In a week that featured a downdraft in stocks on an unexpectedly high CPI reading, the par value and market value of distressed bonds (defined as an option-adjusted spread of 1,000 basis points or more above Treasuries) in the Morningstar US High-Yield Bond Index inched up, while the number of issuers held steady.

Specifically, 142 bonds from 98 issuers were trading for an OAS of 1,000 or more as of Sept. 14, versus 143 bonds from 98 issuers on Sept. 7. The par value of issues marked at distressed levels at Sept. 14 rose by around $1.0 billion, or 1%, to $99.8 billion, against $98.8 billion last week. Meanwhile, the market value of this week's distressed bond subset, $62.4 billion, was up by a thin 0.6% compared to $62.0 billion last week, as the weighted average price per bond slipped slightly, to 62.52, from 62.80 last week.

The top two sectors represented in the distressed subset of the Morningstar US High-Yield Bond Index, healthcare and retail, repeated as one-two for the third week in a row, with 19% and 13% of the bonds in the index, respectively. Third place is again held by basic industries, but this week it shares third with financial services, both with 10%. The increase in distressed financial services bonds is not surprising given the rise — and anticipated further rise — in interest rates so far this year.

The distress ratio rose by 7 bps this past week, to 7.05%, from 6.98% last week, though as it did last week, the overall Morningstar US High-Yield Bond Index’s option-adjusted spread (OAS) went the opposite way, tightening by 24 bps to 456, from 480.

This article originally appeared on PitchBook News