Bear Stearns High Yield Index remains flat during week to July 19, now up 2.46% year-to-date

By Paul A. Harris

St. Louis, July 20 - The Bear Stearns High Yield Index gave up 0.01%, essentially remaining flat during the week to July 19. Its year-to-date return is 2.47%.

The yield to worst at July 19 climbed by 4 basis points from the week before to 8.43%, while the yield-to-worst spread went 12 bps wider to 348 bps.

Eleven of the 12 industry sectors posted negative returns for the month through July 19.

The sole exception, basis materials, was essentially flat at 0.01%, leaving its year-to-date return at 3.74%

The consumer cyclical sector rang up the biggest month-to-date loss. With its negative 1.13% return, it is the sole sector to slip more than 100 basis points during the first 19 days of July. Its year-to-date return narrowed to 1.27%.

Half of that beleaguered sector's 10 components posted greater than 100 basis points month-to-date losses. The building materials sub-sector's negative 1.77% return renders it the index's underperformer during that period. Only slightly better was the homebuilders at negative 1.75%.

Consistent with the headline news it has generated throughout the first half of 2007, home builders is the year-to-date underperformer among the index's sub-sectors. At negative 3.23% it is one of only two sub-sectors mired in the red with the second half of the year up and running. The other is the utility sector's regulated component, at negative 0.35%.

The sole ray of light for the consumer cyclical sector is provided by its lodging component with a 0.96% return for the month to July 19, the index's outperformer for that period, extending its year-to-date return to 1.89%.

The transportation sector is the year-to-date outperformer through July 19 at 4.98%. However its month-to-date return is negative 0.98%.

The outperforming sub-sector is telecommunications' ESMR & PCS component with a 8.23% year-to-date return. Thus far in July it has eked out 0.15%.

On July 19 the index had a market value of $590.77 billion, $4.4 billion lower than the previous week, and the issue count was six lower at 1558.

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