Blog Post
Deal pipeline beginning to recover with Yahoo!, Sophos, leaving dealmakers cautiously optimisitic
The primary high-yield bond and leveraged loan markets stalled in early April. Issuance is now picking up despite ongoing geopolitical and inflationary pressure.
Volatility from the Iran War hit leveraged finance confidence, sidelining lenders as they reassessed conditions. High-yield issuance year to date totals $110.9bn across 118 deals and leveraged loans $215.3bn across 174 deals, according to Octus data — and while activity has fallen every month in 2026, cumulative volume is already running ahead of Q4’25.
With tone steadier, market participants say the forward calendar is building. Recent prints landed well with the buyside — EA, Sealed Air and Janus Henderson all cleared on strong reception — and the market is now watching BASF Coatings, Castrol, Nestle’s Water Unit and Constellation Energy to confirm the window is open. Refinancing supply sits behind them, with Apollo’s Yahoo! and Thoma Bravo’s Sophos expected shortly.
Pent-up demand is real but discriminating: only credits that can absorb headline geopolitical risk and further inflation are clearing.
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