Liquidity Stress Index declines
The liquidity of speculative-grade borrowers in the US continued to show strength in January as Moody's LiquidityStress Index (LSI) declined in the month to 3.0%, a new record low, says Moody's Investors Service in its February SGL Monitor. The LSI has remained at 3.0% through early February. The previous record low was 3.1%, set in July 2012. "The LSI has held in a low and tight range over the past year, staying between 3.0% and 4.2% as companies have taken advantage of accessible credit markets and low interest rates to refinance pending maturities," says John Puchalla, a Moody's Vice President and Senior Credit Officer. High-yield bond issuance has continued at a strong pace so far in 2013, Puchalla reports, as the companies continue to find ready markets for debt refinancing.