The High Yield market, in a virtual free fall in early Q1, has rebounded sharply, particularly among the bellwether non-investment grade names. Average HY yields declined 25bps in June and are now down 50bps ytd. A key focus of the HY market has been the volume backlog of loans held by banks and investment banks. Reports suggest that “hung” bridge loans have declined by more that 50% vs a year ago, freeing up banks to commit capital to new transactions. Notable transactions that were reported as held by banks included $15bn for Citrix and $6.5bn for Nielsen Holdings. The private credit market has also offered a source of relief to the banks in taking on some of the positions that were problematic for the banking sector.