European high-yield bond investors continue to be subjected to a parade of double-B, low-yielding deals that are typically refinancings from seasoned credits. This supply is driving down new-issue yields in the double-B space, at a time when single-B new-issue yields are holding firm — leading to clear disparity between the two ratings categories.

As of May 13, the three-month average new-issue yield for double-B rated deals was at a record low of 3.23%, according to LCD, an offering of S&P Global Market Intelligence. That level is 61 bps lower than the average during the first quarter and 52 bps inside than the previous record quarterly tight of 3.75%, recorded in 2015’s first quarter. – Luke Millar

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This story first appeared on www.lcdcomps.com, LCD’s subscription site offering complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.