US-Credit-Alpha-Bouncing-around-此为英文文档

volumesacrossinvestmentgradeandhighyield,opportunitiesinhigher-quality/longer-durationloans,equitydistributionsinCLOs,andrelativevalueinbankpreferreds.

ThisdocumentisintendedforinstitutionalinvestorsandisnotsubjecttoalloftheindependenceanddisclosurestandardsapplicabletodebtresearchreportspreparedforretailinvestorsunderU.S.FINRARule2242.Barclaystradesthesecuritiescoveredinthisreportforitsownaccountandonadiscretionarybasisonbehalfofcertainclients.Suchtradinginterestsmaybecontrarytotherecommendationsofferedinthisreport.

Pleaseseeanalystcertificationsandimportantdisclosuresbeginningonpage38.

Completed:10-Aug-23,22:48GMTReleased:11-Aug-23,10:30GMTRestricted-External

CreditResearch

11August2023

USCreditAlpha

Bouncingaround

Thisweek,weanalyzetherecentsurgeinsingle-nameCDS

FOCUS

BradleyRogoff,CFA

+12124127921

bradley.rogoff@BCI,US

DominiqueToublan

USCreditAlpha

Overview........................................................3

Riskassetsoscillatedamidmixeddatathisweek.ThemaindataprintontheeconomiccalendarwastheJulyCPIrelease,whichwaslargelyinlinewithexpectationsandprovidedlittlereasonforinvestorstoadjusttheirviews.Whilethecreditriskpremiumremainslow,thatisnotunusualinahistoricalcontext.

InvestmentGradeandHighYield

Theresurgenceofsingle-nameCDS................................5

Amidtheshiftfrom2022’smacro-drivenmarketto2023’smoremicro-drivenone,single-nameCDSrisk-takingandvolumeshavesurgedtomulti-yearhighs.WeexaminetrendswithininvestmentgradeandhighyieldCDSandhighlightthemostactivecreditsandthosewiththelargestincreasesinrisk.

LeveragedLoans

Longingforquality..............................................13

Returnsforlower-qualityloanshaveoutpacedhigher-qualitypeersmateriallyYTD.However,lendingstandardscontinuetotighten,whichhashistoricallycorrespondedtomoredefaults.Weidentifyalistofhigher-qualityloanswithrelativelyattractivecarryprofilesforinvestorsseekingup-in-qualitymaturityextension.

CLOs

EquitydistributionsremainedstrongduringJulypaymentcycle.....19

Equitydistributionswererobustacrossbothregionsamidthestabilizingratesbasis.Weexpectrange-boundpayoutsintheUSandfurtherimprovementinEuropeinOctober(4Q23).Equityfromrecentvintagescontinuestolookappealing,withhigherexcessspreadsandcleanerportfolios.

+12124123841

dominique.toublan@BCI,US

11August20232

Barclays|USCreditAlpha

HybridCapital

Bankpreferreds:Pickyourspots..................................29

OverallvaluationsstilllookattractiverelativetoBBsdespiterecentcompression.Recentextensionsindicatethatstructureswithresetsbelow350bphavethehighestextensionrisks,sowepreferhigherreset/seniorspreadratios.WehighlightattractiveBig6andregionalbankstructures.

printontheeconomiccalendarwastheJulyCPIrelease,whichwaslargelyinlinewithexpectationsandprovidedlittlereasonforinvestorstoadjusttheirviews.Whilethecreditriskpremiumremainslow,thatisnotunusualinahistoricalcontext.

Bouncingaround

Thesummerlullhasstartedtoseepintomarkets,withcreditspreadsbouncingaroundinarelativelytightrangethisweekasinvestorsdigestedsomemixeddata.CDXIGandCDXHYwere1bpand4bptighter,respectively.Cashspreadsweremoremixed,withinvestmentgrademarginallywiderandhighyield5bptighter(throughWednesday’sclose).

USJulyCPIwasinlinewithexpectations.BothheadlineandcoreCPIrose0.2%m/m,bringingthey/ymarksto3.2%and4.7%,respectively.Thiswasthesecondstraightmonthof0.2%m/mgrowthforcoreCPI,thesmallestback-to-backmovesinovertwoyears,andthereportbolsteredthelikelihoodofapauseattheFed’sSeptembermeeting(seeJulyCPI:Moreofthesame).

Chinaindeflation.China’sheadlineCPIturnednegativeforthefirsttimesinceFebruary2021,whilecoreandservicesCPIpickedupmodestly(seeCPIandPPIlikelybottomingout).Thegrowthpicturecontinuestoweaken,thehousingmarketremainsverychallenged,andnewexportordersaredippingfurtherintocontractionaryterritory(seeJulytrade:Insufficientdemandlingering).ThenegativetrajectoryhasyettobleedintosentimenthereintheUSwithinvestorsmoredomesticallyfocused.

Initialestimatesfor3QUSGDPgrowtharenow4.1%.TherecentupdatefromtheAtlantaFedshows3QUSGDPgrowthabove4.1%.Thisfollows2.4%growthin2Q.Evenifthesefiguresarereducedasweprogressthrough3Q,theseareclearsignsthattheUSeconomyremainsextremelyresilienttothe550bpofhikes.Combinedwiththetightnessinthelabormarket,datacontinuetosupportasoftlandingor,attheveryleast,adelayinrecessionstartdates.TheAtlantaFed’swagetrackershowedwagesup5.3%y/yinJuly,matchingtherateinJune(seeJulyAtlantaFedwagetracker).StabilizationattheseelevatedlevelscouldmakereliefincoreCPImorechallenging.

Smallbusinessesarebecomingmoreoptimistic.TheNFIBsurveyresultsthisweekshoweda0.9ptadvanceto91.9insmallbusinessoptimism,tyingwithlastNovemberasthebestprintsinceSeptember2022.Mostcomponentsoftheindexshowedimprovements,withnotableupticksinhiringplans,from15%to17%,andcapitalspendingplans,from25%to27%.

Moredowngrades-thistimeaswathofbanks.WhilelastweekFitch’sdowngradeoftheUnitedStates’creditworthinessgrabheadlines(seeDéjàvu),thisweekitwasMoody’sbroaddowngradeofagroupof10regionalbanks.Regionalbankspreadshavewidenedmarginally

11August2023

CreditResearch

11August2023

USCreditAlpha

Overview

Riskassetsoscillatedamidmixeddatathisweek.Themaindata

CORE

BradleyRogoff,CFA

+12124127921

bradley.rogoff@BCI,US

DominiqueToublan

+12124123841

dominique.toublan@BCI,US

3

11August20234

Barclays|USCreditAlpha

sincethedowngrade(about4bp),butmostofthemoreliquidbondsarebacktounchanged-clearlyalessnegativereactiontobadnewscomparedwiththeMarch-Maytimeframe.Deeperdownthebankcapitalstackinpreferreds,westillseevalueinhigher-resetsecurities,aswellasfloaters,andwehighlightbuyrecommendationsintheBig6andregionalsinthisweek’shybridssection.

Thecreditriskpremiumreachedanewlowforthiscycle,butcanstaylowforawhile.

SpreadasapercentageofyieldfortheUSinvestmentgradeindexhit21%lastweekandhasbouncedslightlythisweek,withyieldslowerandspreadswider.ThiswasthelowestlevelsinceAugust2007(Figure2).Since2010,inthepost-GFCera,thisrelativepremiumhasaveraged42%,butTreasuryyieldswerehistoricallylow,andinalmostanyscenario,thismetricwasgoingtodeclineasyieldswenthigher.Sowhilethisindicatesrelativelylowcompensationforcreditrisk,wenotethatthismetriccanstaylowforlongperiodsoftimeanddoesnotnecessarilyquicklymeanrevert.Infact,formostof2004-07,thepercentpickupremainedbelowcurrentlevels,averaging18.5%whenTreasuryyieldswereatsimilarlevels.

FIGURe1.Weeklyindexchanges

WednesdayClose

LastWeekClose

4-Week

Average

CorporateIndex(bp)120118120

CDX.IG40(bp)676865

HYIndex($Price)89.4689.2089.54

CDX.HY40($Price)102.53102.50103.00

FIGURe2.Creditriskpremiumhitsnewlowinpost-GFCera,butcanremainlowforlongperiodsoftime

IGOASas%ofYield

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

'89'91'93'95'97'99'01'03'05'07'09'11'13'15'17'19'21'23

USIGOAS/YTWCurrent(21.7%)

Source:Bloomberg,BarclaysResearchSource:Bloomberg,BarclaysResearch

mcro-rvenone,snge-namers-anganvoumes

havesurgedtomulti-yearhighs.WeexaminetrendswithininvestmentgradeandhighyieldCDSandhighlightthemostactivecreditsandthosewiththelargestincreasesinrisk.

ForourlatestUShighgradecompanyratingchanges,clickhere.Foroursectorratings,clickhere.ForourlatestUShighyieldcompanyratingchanges,clickhere.Foroursectorratings,clickhere.

Asafollow-upto1H23tradingvolumerecap:Asingle-namestory,whichhighlightedthedeclineinactivityinmostmacrocreditproductsin1H23followinglastyear’ssurgeandtheincreaseinsingle-nameactivity,wetakeacloserlookatdevelopmentsinAmericascorporate(ex-LatAm)CDSusingdatafromDTCCasofJune30,2023.

•Netnotionaloutstandinghasincreased19%y/y,toanewmulti-yearhigh,asinvestorscontinuetoaddriskinthesingle-nameCDSmarket.Theincreaseinnetriskoutstandingisallthemoreremarkableconsideringthenumberofcreditslosttodefaultin2020andpastconcernsaboutnarrowlytailoredcreditevents.

•Volumesoverallhaveincreased52%y/yandarealsoatmulti-yearhighs,withthegainsininvestmentgradeoutpacingthoseinhighyield.Whenmeasuringactivitybasedontheprevailingratingsatthetime,investmentgradeisup64%whilehighyieldisup29%.Usingalike-for-likecomparisoninsteadbasedoncurrentCDXindexconstituents,investmentgradeisup62%andhighyieldisup41%.

•Ancedotalevidencesuggeststhattheuptickinactivityhasoccurredacrossinvestorstypes,withhedgefundsparticularlyactive,butwebelievethattheneedforbankstohedgeidiosyncratic/counterpartyrisk(andthewillingnessofotherinvestorstoprovideanoutletforthatdemand)hasbeenanimportantdriverofvolumes.

•Fromasectorperspective,ininvestmentgrade,telcos,healthcare,andutilitieshaveledthevolumegains,whileinhighyield,theconsumergoodsandservicessectorsstandout.

•Volumeshavebecomeslightlylessconcentratedininvestmentgrade,asthegainshavebeenfairlybroad-based,buttheyhavebecomemoreconcentratedinhighyield,inpartbecauseofthelossofrisingstars.

•Weincludetwolists:onewiththe15IGandHYCDSwiththelargestabsoluteincreasesinnetnotionaloutstandingin2023(Figure3)andtheotherwiththetop25IGandHYCDSbyaverageweeklyvolume(Figure10).

11August2023

InvestmentGradeandHighYield

Theresurgenceofsingle-nameCDS

Amidtheshiftfrom2022’smacro-drivenmarketto2023’smore

idiilCDSiktkidl

CORE

CreditResearch

11August2023

JigarPatel

+12124121161

jigar.n.patel@BCI,US

5

11August20236

Barclays|InvestmentGradeandHighYield

Agrowingappetiteforrisk-takinginCDS

MeasuringriskinCDS

TohelpquantifytheamountofriskoutstandinginAmericascorporateCDS,weusedataonnetnotionals.DTCCprovidesbothgrossandnetnotionals,withgrossrepresentingarunningtotaloftradeswhilenetreflectstheriskoutstandinginthecontract.

Forexample,ifinvestorAbuys$10mnofprotectionfrominvestorBandthisisthefirsttradeinaparticularCDScontract,thegrossnotionalwouldbe$10mnandthenetnotionalwouldalsobe$10mn.IfinvestorAthensells$10mnofprotectiontoinvestorC,thegrossnotionalwouldincreaseto$20mnbutthenetnotionalwouldremainat$10mn,asthenetriskinthecontractisthesame.

Netnotionalsareatmulti-yearhighs

Americascorporatesingle-namenetnotionals,withtheexceptionofamodestbumphigherduringthepandemicin2020,hadbeenrelativelysteadyuntilthisyear(Figure1).Onay/ybasis,netnotionalshaveincreased19%(Figure2)andareatthehighssinceatleast2018.

FIGURe1.NetnotionaloutstandingforAmericascorporateCDShassurgedoverthepastyear...

$bn

180

170

160

150

140

130

120

Jan-18Jan-19Jan-20Jan-21Jan-22Jan-23AmericasCorpex-LatAmSNCDSNetNotionalO/S

Source:DTCC,BarclaysResearch

FIGURe2....increasing19%versusthesameperiodin2022

AttheEndofH1($bn)

180

170

160

150

140

130

120

110

100

+19%

+9%

-8%

+1%

20192020202120222023

AmericasCorpex-LatAmSNCDSNetNotionalO/S

Dataasoftheendof1Hofeachyear.Columnlabelsdenotetheyear-over-yearchange.

Source:DTCC,BarclaysResearch

Theincreaseinnetnotionalsisallthemorenotablegiventhenumberofonce-activecreditsthathavedefaultedandfallenoutoftheCDSmarket.In2020,therewereninedefaultsinon-the-runCDX.HY.AlthoughanumberofthosehavesincereturnedtotheCDSmarket,theyhaveyettoregaintheirpreviousactivitylevels.

Theincreaseisalsonotablegivenpastconcernsaboutmanufacturedornarrowlytailoredcreditevents.ISDAmadechangestothecreditderivativesdefinitionsinlate2019toaddresstheseconcerns(seeAddressingthePotentialPitfallsofCDS),buttherewassomeuncertaintyaboutwhethertheywouldbeenoughtorestoreinvestorconfidenceinthemarket.Whileitisdifficulttosaywhetherrisk-takinginCDSwouldbeevenhigherwithouttheseconcerns,therecentriseinnetnotionalsisnonethelessencouraging.

11August20237

AT&TINC.797

18%19%67%

53%

31%43%48%21%17%53%38%

19%25%33%

CVSHEALTHCORPORATION544

UNITEDHEALTHGROUPINCORPORATED486

AMGENINC.363

CITIGROUPINC.285

SEMPRAENERGY272

BRISTOL-MYERSSQUIBBCOMPANY243

Barclays|InvestmentGradeandHighYield

Alookatthecreditswiththelargestincreasesinrisk

Atamoredetailedlevel,theincreaseinnetnotionalshasbeenfairlybroad-based,withmorethan75%ofCDX.IGandCDX.HYconstituentsexperiencingyear-to-dategains.Figure3liststhetop15IGandHYCDSnamesbyabsoluteincreaseinnetnotional.OntheIGside,asidefromthelargeabsoluteincreasesinBankofAmerica(morethandoubling)andthetelcos(whichwereactuallysmallonapercentagebasis),thehealthcaresectorstandsout.Onthehighyieldside,themajorityofthelistisconsumergoodsandservicesnames,whichisconsistentwiththebroadervolumetrendswithinHYCDS(whichwediscusslater).

FIGURe3.TopfifteeninvestmentgradeandhighyieldCDSbyyear-to-dateincreaseinnetnotional

Top15IGCDSbyYTDIncreaseinNetNotional

YTDChg

Top15HYCDSbyYTDIncreaseinNetNotional

YTDChg

TickerRefentity

$mnPct

TickerRefentity

$mnPct

42%27%48%60%

29%

28%20%27%32%17%16%80%

47%38%38%

BAC

ATTINC

VZ

CVS

FPL_CAP

UNH

LOW

AMGN

PFE

C

PHM

SRE

IBM

BMY

FCX

BANKOFAMERICACORPORATION2634

MTGCCO_HYUMNFLX*

GT

KBH

FD

CAR

THC

APA*

JWN

LW

ARNC

OLN

ADT

MGICINVESTMENTCORPORATION161

123%

CCOHOLDINGSLLC140

VERIZONCOMMUNICATIONSINC.701

YUM!BRANDSINC.140

NETFLIXINC.139

NEXTERAENERGYCAPITALHOLDINGSINC.543

THEGOODYEARTIRE&RUBBERCOMPANY134

KBHOME125

LOWE’SCOMPANIESINC.400

MACY’SINC.123

AVISBUDGETGROUPINC.119

PFIZERINC.318

TENETHEALTHCARECORPORATION112

APACHECORPORATION103

PULTEGROUPINC.282

NORDSTROMINC.96

LAMBWESTONHOLDINGSINC.92

INTERNATIONALBUSINESSMACHINES

255

HOWMETAEROSPACEINC.84

CORPORATION

OLINCORPORATION73

FREEPORT-MCMORANINC.228

THEADTSECURITYCORPORATION65

DataasofJune30,2023.TickercolumnreflectsBarclays’CDStickers.*NLFXandAPAarenowratedinvestmentgradebutappearinthehighyieldlistastheywereratedhighyieldformostofouranalysisperiod.

Source:DTCC,BarclaysResearch

Single-nameCDSvolumeshavesurgedin2023

Lessmacro,moremicro

Fromavolumeperspective,CDSactivityisupsignificantlyinthefirsthalfof2023,52%abovethesameperiodin2022(Figure4).Thesurgeinactivityhascoincidedwithadeclineinmacrocreditproductvolumes,asinvestorsappeartobefocusedmoreonidiosyncraticandsingle-namestoriesandlessonbroadmacrothemes.

Anecdotalevidencesuggeststhattheincreaseinactivityhascomefromavarietyofinvestortypes,withincreasedparticipationfrombankhedgingdesks,inparticular,helpingtodrivetradingactivityasbanksseektohedgeidiosyncratic/counterpartyrisks.Theneed/desireforbankstohedgeisnotanewdevelopmentandwasathemein2022aswell.Whatappearstohavechangedin2023,inouropinion,isthewillingnessofotherinvestors(especiallyhedgefunds)toprovideanoutletforthathedgingdemand,whichinsomecaseshelpscreateavirtuouscycleofactivity.

11August20238

Barclays|InvestmentGradeandHighYield

Investmentgradecontinuestooutpacehighyield

Togetasenseoftradingvolumesbyquality(IGversusHY),wetaketwoapproaches.Inthefirst,weupdateratingsforindividualCDScontractseverysixmonthsandthenusethoseratingsforthenextsixmonthstoaggregatemarketvolumesbyquality(Figure5).Usingthatapproach,thegainsininvestmentgradevolumes(+64%)faroutpacedthoseinhighyield(+29%).Onethingtobeawareofwiththisapproachisthatthehighyieldmarketlostthreefairlyliquidcreditstoupgradesinthesecondhalfof2022-T-MobileUSA,HCAInc.,andFirstEnergy-whichloweredthey/ygainforthatmarket(sincetheywerepartofthe2022highyieldtotalbutnotthe2023one).

FIGURe4.Americascorporatesingle-nameCDSvolumeshavesurged52%in2023

$bn

500

450

400

350

300

250

200

+52%

+17%

-16%

-1%

20192020202120222023

TotalAmericascorporateex-LatAmsingle-nameCDSvolumesinthefirsthalfofeachyear.Columnlabelsdenotetheyear-over-yearchange.

Source:DTCC,BarclaysResearch

FIGURe5.Usingtheprevailingratingsatthetimeofactivity,investmentgradeandhighyieldCDSvolumesareup64%and29%,respectively

$bn

64

350

+%

300

+31%

250

-23%+4%

200

+29%-6%+0%-9%

150

100

50

0

IGHY

20192020202120222023

Ratingsareupdatedeverysixmonthsandthenusedforthesubsequentsix-monthperiod.

Source:DTCC,BarclaysResearch

Toconductamorelike-for-likecomparison,inoursecondapproachweusethecurrentconstituentsoftheon-the-runCDX.IGandCDX.HYindices(asaproxyfortheirrespectivemarkets)andcomparetheirvolumesfromthefirsthalfof2022withthesameperiodin2023.Weincludeonlyconstituentsthathadvolumesinbothperiods(all125tickersforIG,86tickersforHY).Usingthisapproach,wefindthatvolumesfortheaverageCDX.IGconstituentincreased62%y/y(Figure6),onlyslightlylessthaninourfirstapproach,whilevolumesfortheaverageCDX.HYconstituentwereup41%(Figure7),wellabovetheearlierapproach.Bothmethodsshowthatthereweremeaningfulvolumegainsinbothmarkets,butwithamoresubstantialincreaseininvestmentgrade.

Amoregranularlookatliquidity

Investmentgradealsofaresbetterthanhighyieldwhenviewingactivityatamoregranularlevel.Ofthe125creditsinCDX.IGS40,100%averagemorethan$20mn/weekinvolume,80%averagemorethan$50mn/week,and48%morethan$75mn/week.

Onthehighyieldside,ofthe100creditsinCDX.HYS40,56%averagemorethan$20mn/weekinvolume,32%averagemorethan$50mn/week,and23%averagemorethan$75mn/week.

Investmentgradehastypicallybeenmoreactivethanhighyield,asdealercapacitytomakemarketsandholdrisktendstobegreaterininvestmentgradebecauseofthetightervaluationsandnegligibledefaultrisk,andindexarbitrageactivitytendstobemuchgreaterinCDX.IG,whichisanothersourceofsupportforinvestmentgradesingle-namevolumes.

HighyieldmarketliquidityhasalsobeenhamperedbythelargenumberofnewHYCDScontractsthathavebeencreatedrecently,asliquidityinnewcontractsistypicallyslowto

11August20239

Barclays|InvestmentGradeandHighYield

develop.Overthepastthreeindexrolls,thirteencreditshavebeenaddedtoCDX.HYthatdidnothaveoutstandingCDSriskatthetime.Whiletheadditionofthesecontractscouldultimatelybebeneficialforthemarket,theirinitialilliquidityposesachallengetoindexarbitrageactivityinCDX.HY,whichnormallycouldbeanimportantsourceofsingle-nameflows.

Aquicknoteonnon-indexnames

Amongnon-indexnames,theBig6banksandFMCCremainthemostactive,withformerindexconstituentsininvestmentgradealsoseeingactivityfromtimetotime.Themostnotabledevelopment,however,hasbeentherecentpickupinactivityinnamessuchasAmazon,Apple,Coca-Cola,andPepsiCo.Whiletheiraverageweeklyvolumesarefairlylow(therehavebeenweekswhentheyhavenottradedatall),inahandfulofweeks,theirvolumeshavebeensignificant($50-100mn).Itremainstobeseen,however,ifthesearemoreofaone-offoriftherecentactivitywillbegetmoreactivity.

Examiningsectortrends:IGhealthcareandutilitiesandHYconsumersectorsstandout

Wecanusethelike-for-likevolumecomparisonsinFigure6andFigure7toexaminesectortrends.Ininvestmentgrade,whilethetelcosector(primarilyAT&TandVerizon)remainsthemostactive,thelargestpercentagegainshavebeeninthehealthcareandutilitiessectors.Thevolumegainsforthehealthcarenames,inparticular,areconsistentwiththelargeincreasesinnetnotionalsforseveralofthecompaniesinFigure3.Theconsumernamesarealsoamongthemoreactiveonesintheindex.

OnesectorthatisnotaddressedinFigure6isbanking.BanksoverallremainamongthemostactiveCDScontracts,andaggregatevolumesfortheBig6haveincreased55%y/y,butthisnumberisheavilyskewedbyBankofAmerica,whosevolumeshaveincreasedbynearly200%.WebelievethatmuchoftheincreaseinBACvolumescanbeattributedtoelevatedhedgingdemandduringtheregionalbankcrisis.About42%ofBAC’s1Htradingactivityoccurredinafive-weekstretchfrommid-Marchtomid-April.

Onthehighyieldside,asidefromthelargepercentagegainfortheonetelcoinFigure7(Lumen),thelargestgainshavebeenintheconsumersectors,withaveragevolumesforbothconsumergoodsandconsumerservicesoutpacingthoseoftheothersectors.

InFigure10attheendofthepublication,welistthetop25mostactiveIGandHYCDSsofarin2023.Consistentwiththesectortrendshighlightedabove,ofthe25IGnames,twoaretelcos,fourarehealthcarenames,sixarebanks,andsevenareconsumer-related.OntheHYside,14ofthe25areconsumergoodsandservicesnames.

11August202310

Barclays|InvestmentGradeandHighYield

FIGURe6.VolumesfortheaverageCDX.IGS40constituenthaveincreased62%in2023

AverageWeeklyVolume($mn)

Sector#ofTickers20222023y/ychg

BasicMaterials842.869.863.1%

ConsGoods

18

64.7

94.4

46.0%

ConsServices

17

46.2

87.5

89.2%

Energy

15

55.4

72.1

30.2%

Financials

18

43.2

70.9

64.2%

Healthcare

12

51.2

106.1

107.3%

Industrials

17

49.2

69.4

41.0%

Technology

9

54.4

73.5

35.0%

TelcoServices

3

185.1

341.2

84.3%

Utilities

Average

8

38.8

53.6

79.1

87.0

104.0%62.1%

FIGURe7.VolumesfortheaverageCDX.HYS40constituenthaveincreased41%in2023

AverageWeeklyVolume($mn)

Sector#ofTickers20222023y/ychg

BasicMaterials730.438.827.5%

ConsGoods

11

47.0

73.4

56.3%

ConsServices

25

42.1

63.8

51.7%

Energy

6

46.5

59.6

28.2%

Financials

9

20.8

25.5

22.7%

Healthcare

6

34.9

41.8

19.8%

Industrials

12

39.7

54.6

37.5%

Technology

5

21.8

26.6

22.0%

TelcoServices

1

68.0

123.3

81.5%

Utilities

Average

4

39.0

38.0

49.3

53.7

26.5%

41.5%

Tablecompares1Hvolumesfrom2022and2023.

Source:DTCC,BarclaysRessearch

Tablecompares1Hvolumesfrom2022and2023.Comparisonbasedontickersthathadvolumesinbothperiods.

Source:DTCC,BarclaysResearch

VolumeshavebecomeslightlylessconcentratedinIGandmoreconcentratedinHY

Thelastpartofouranalysislooksatv