Weekly Market Summary

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• The high yield primary market remains exceptionally active, fueled in large part by surging demand for AI related financing. April issuance reached $40 billion, the highest monthly total since September and the second strongest month since the peak issuance environment of 2021. Borrowers are tapping the market for a variety of financing needs, though AI infrastructure remains a dominant theme. Large transactions from Meridian Arc, Tract Capital, and Core Scientific pushed year to date AI infrastructure issuance in the high yield market to $26.6 billion, already ahead of most full year forecasts and nearly double the total issued in all of 2025.
• The wave of mostly double B rated AI related issuance is helping keep the high yield market tilted toward higher quality borrowers amid an uncertain backdrop. In April, 46% of new bond issuance carried straight double B ratings, following similarly elevated levels in February and March. That trend is consistent with the 2025 year to date average of 47%, which marks the highest proportion on record. By comparison, the previous peak was 37% in 2019.
• Signs of stress in private credit remain somewhat difficult to identify directly, but are becoming more visible through loan amendments, maturity extensions, and higher levels of payment in kind interest. Speakers noted that the market is transitioning back to a more normalized environment after years defined by abundant capital, low borrowing costs, and elevated valuations, making higher default activity more likely.

Pitchbook as of 4/30/26