Two new issues in four USD tranches were priced this week totaling 10.49bn in volume.

HY Spreads were wider on Friday, and also for the week.. CCCs widened by thirty-four basis point this week to +1013. Bs were wider for the week by sixteen at +373, and BBs widened by eighteen basis point at +218. Within the ICE/ BofA US HY Index, the Average return is lower for the week by - 0.481%. For the week, Bs outperformed, lower by - 0.339%. The CCC rated sector was lower for the week by - 0.743%, and. BBs closed lower by - 0.515%.

The featured deal (tranche) of the week was the 8nc3 senior note USD2.50bn Oak-eagle AcquireCo, Inc. (EA) 8.75% 07/01/2034 $100.000. B3/B. via Joint Bookrunners are JPM +. +449 vs UST 4.375% 05/15/2034. The unsecured tranche of the Electronic Arts LBO financing was priced 100-110bps through index spreads, had a $14bn order book, and traded up 3.5points after freeing syndicate. The bonds are still higher by 3 points at week's end

The sentiment in the primary market is focused. Underwriters have been locked into the three LBO / M&A deals that have been announced over the past two weeks. Electronic Arts and Nexstar Media were successfully completed. The third leg of the stool is Sealed Air. The bond side was announced on Thursday, and the 3-part USD / EUR deal is expected to price the week of March 30. The deal as it stands is USD1.35bn 7nc3 SSN, the Euro equivalent of USD600m 7nc3 SSN, and USD500m 8nc3 SN. The Leads are via Bookrunners: UBS (B&D) on USD7nc3 SSN, GS (B&D) on EUR 7nc3 SSN, and BofA (B&D) on USD 8nc3 SN. The primary market is not otherwise closed, but it will take a clean well-established issuer to gain investor acceptance to issue notes until sentiment broadens.

Treasury yields closed the week higher due to inflation fears caused by rising oil prices and likely no rate cuts this year from the FOMC. Levitating oil prices and supply chain disruptions are the biggest concerns. The 2-year was higher for the week by +1.2bps to 3.912%, the 5-year higher by 6.0bps to 4.068%, the 10-year +4.8bps to 4.428%, and the 30-year higher by 2.7bps to 4.965%.

Stocks were lower again on Friday and lower for the week on fears of supply disruptions and higher prices. The Dow was lower for the week by - 0.90%, S&P 500 - 2.12%, NASDAQ - 3.23%, and the Russell 2000 finished the week - 1.68%. Over the past month (starting pre-war) the Dow is lower for the week by - 8.16%, S&P 500 - 5.83%, NASDAQ - 5.41%, and the Russell 2000 was higher by + 0.46%. The VIX was higher for the week by +4.27 points to 31.05.

In this week's economic data releases, Chicago and Philly Fed Indexes were both lower than expectations, ADP Weekly Employments was strong, Productivity met lower estimates, Unit Labor Costs were above estimates, S&P PMI data was mixed, Richmond Fed data exceeded expectations, Import and Export Prices were higher, Initial & Continuing Jobless numbers were low again, and UMich showed lower Sentiment and Current Conditions, higher Expectations, and Inflation higher near term and lower long term.

Weekend event risk of fears continues as the war with Iran presses on.

Despite mixed rhetoric, negotiations seem distant as Iran says that it will not cease to enrich uranium, and the US says they will not allow Iran to do such. The Strait of Hormuz continues to be highly restricted. US military plans continue to build, and the duration of the military action is likely last for longer than most expect..

NEW ISSUES THIS WEEK (03/23 - 03/27) :

This week, (Mar 23- Mar 27), there were two (02) USD high yield deal priced in four tranches. Volume for the week was $10.49bn. Month-to date volume is $20.49bn. 2026 year-to-date volume is $77.85bn vs $64.15bn in 2025. 2026 volume is ahead of last year (2025) by + 21.3%.

TODAY'S MARKETS:

• High-Yield ICE / BofA index is LOWER today (3/27) by - 0.476%. The average spread was wider by four on 03/27 (+ 21) basis points at 342. The BB sector spread widened by nineteen (+ 19) at 218, The B sector was widened by twenty-two (+ 22) at 373. The CCC sector was widened by (+ 29) at 1013.
• Over the prior past five trading days, the Average spread is wider + 18bps, BB's are wider + 18bps, B's are wider + 16bps, and CCCs are wider by + 34bps.
• The largest HY ETFs are LOWER today (3/27) by - 0.31% on average and are LOWER by - 0.27% over the past five trading days, on average.
• The CDX HY Index is LOWER today, Mar 27 by - 0.973 at 103.996. The best performers are CSC Holdings LLC (CSCHLD), Transocean International Ltd (RIG), and Venture Global LNG Inc. (VENLNG). The worst performers were Xerox Corp. (XRX), Unisys Corp. (UIS), and CoreWeave Inc. (CRWV).
• Oil (WTI May26) is HIGHER today by + $5.16 at $99.64 per barrel.
• The Dollar Index (DXY) is HIGHER today by + 0.265% at 100.193.
• Spot Gold is HIGHER today by + $118 at $4494 per ounce.