HY Market Weekly Minutes: High Yield Just Won’t Break—$10bn of Deals Say So (February 10, 2025)

A Brief Recap of Last Week's High Yield Market Performance

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Another week, another failed selloff.

Just when the bears thought they had their moment—tariff fears, sticky inflation concerns, and CCCs widening—high yield shrugged it off to close ~flat on the week.

Resilient? The primary market just printed over $10 billion, led by a $2bn secured print from—wait for it—DirecTV (yes, they still exist).

Guest what? LBOs and dividend deals are still clearing. That’s not supposed to happen in a high interest rate environment. If anything, it speaks to just how deep the bid is for paper.

Even more telling, the market took a weaker-than-expected jobs report (143k vs. 175k) in stride. Despite a move higher in yields, spreads barely widened. No forced selling, no panic—just another week of buyers stepping in.

The question isn’t whether high yield can handle higher rates anymore. It’s whether the bears will ever learn to stop fighting the technicals.