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Weekly Market Summary
Oct 13 to Oct 17, 2025
Extra Credit*
- The combined maturity and coupon wall is set to reach nearly $1.4 trillion in 2026. Growing maturity walls have resulted in a flow of money back to investors, which is typically reinvested. Historically, 2024 had the second largest annual volume on record, and 2025 is roughly on pace to match it. Even with the large gross issuance volumes of 2024 and 2025, net issuance has not increased in lockstep.
- Coupons have absorbed 75% of net supply in 2025. Coupons as a percent of net issuance are up 12pp year-over-year and are 25pp above the long-term median of 50%. This is the highest since 2018, and since 2000, there have been only four other instances with coupons this large relative to annual net supply.
- Consistent with historical trends, large coupon volumes have dampened spread volatility again this year. Over the past quarter-century, years when coupons as a percent of net supply were elevated have seen diminished spread volatility.
As of 10/15/25.
Previous reports
*Source: Morningstar®, Bloomberg, Credit Suisse. OAS is Options Adjusted Spread. 4-year discount margin is used for spread for bank loans. Yield quoted is yield-to-worst or equivalent calculation. YTD Low / High for yields are based on end of week and not intraday movements. Indexes and sub-indexes: Investment-grade corporates represented by Bloomberg US Corporate Bond Index. High-yield bonds represented by Bloomberg US Corporate High Yield Index. Bank loans represented by Credit Suisse Leverage Loan Index. The red and green arrows depicted under Yields, Option Adjusted Spreads, and Prices indicate a higher or lower value from the previous week.
Past performance does not guarantee future results. Index performance is not indicative of fund performance. Indexes are unmanaged and it is not possible to invest directly in an index.
Any discussion of individual companies is not intended as recommendation to buy, hold or sell securities issued by those companies. Aristotle Fund holdings can be found on the fund pages linked above.
Investors should consider a fund’s investment goal, risks, charges, and expenses carefully before investing. The prospectus and/or the applicable summary prospectus contain this and other information about the Fund and are available from AristotleFunds.com. The prospectus and/or summary prospectus should be read carefully before investing.
Investing involves risk. Principal loss is possible.
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