Bear Stearns high yield index breaks losing spell, rises 0.08% for YTD return of 2.94%

New York, May 31 - The Bear Stearns High Yield index broke three straight weeks of declines with a rise of 0.08% in the week to May 30, taking the year-to-date return to 2.94%.

The index posted only a small move the week before, declining just 0.03% in the seven days to May 23.

Despite the positive return, the index's yield to worst rose three basis points in the week to May 30, climbing to 12.03% from 12.00% the week before. The spread to worst widened 13 basis points to 773 basis points from 760 basis points.

Overall the index included 1,427 issues with a market value of $339.882 billion, both up sharply from 1,412 issues with a market value of $327.592 billion the week before. Most of the increase was in telecommunications, specifically the CLEC and other local carriers group, which added $11 billion to $13.2 billion from $2.1 billion the week before. Telecommunications now accounts for 13.18% of the index compared to 10.29% previously.

Of the index's 11 industry sectors, seven rose and four declined in the most recent week.

Utilities were by far the best performer, rising 1.55% in the seven-day period for a year-to-date return of negative 2.25%. The previous week's best performer, basic materials, added another 0.22% in the most recent period.

For the year so far, transportation remains in first place with a 10.49% return despite a 0.24% loss in the week just completed.

Weakest was telecommunications, which fell 0.91% in the week for a year-to-date loss of 19.47%. Telecommunications had also been the biggest loser the week before and continues to be bottom for 2002 so far.

Among narrow sub-sectors, the biggest rise during the seven days was for broadband access and internet services, which gained 3.41%. Although the group's year-to-date return is still negative 32.75%, the rise was enough to take them out of bottom place on a year-to-date basis. That position is now held by long distance, which gave up 0.21% for a loss so far in 2002 of 33.26%.

The previous week's top performer, diversified programmers, added 0.28%, a modest rise after soaring 11.52% and 9.57% in the two previous weeks. Although much smaller than recently, the gain kept diversified programmers as the number one sub-sector so far this year with a 28.47% return.

Moving in the other direction, the week's biggest decline was shown by the newly expanded CLECs, which dropped 2.03% for a year-to-date loss of 32.45%.

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