(Bloomberg) — Corporate bond sales have held up despite recent market volatility, and high-grade issuance is anticipated to be busy next week with a potential jumbo offering in the works.

May volume is currently about two-thirds of the $150 billion expected for the month, Bloomberg’s Michael Gambale reported. The week ahead looks to be active, but will likely fall short of the $50 billion needed to match estimates. Meanwhile, high-yield credit measures have weakened recently, though sentiment remains optimistic in primary markets.

“Credit markets felt softer this week as risk assets generally struggled until Thursday,” Barclays Plc strategists Bradley Rogoff and Shobhit Gupta wrote in a note Friday. “That softness might stand out after months of tightening, but in the grand scheme, it was very modest,” they said.

High Yield

DT Midstream is marketing a debt sale and is holding investor meetings through May 25. It intends to use the proceeds from its $2.1 billion two-part offering to make a payment to DTE Energy. Even though investors yanked $1.7 billion from retail funds in the week ended May 19, according to Refinitiv Lipper, Thursday’s borrowers saw most of their deals price at the tight end of talk with healthy orders.

There are at least 12 leveraged loan commitments due next week, including a $1.9 billion term loan from Carnival Corp., which is looking to slash the interest payments on leveraged loans it took out during the depths of the pandemic. Investors are having an increasingly sunnier outlook on the travel industry with the U.S. economy continuing to forge ahead on reopenings and as more people become vaccinated.

The outlook for the travel industry in parts of Asia, however, is not as rosy. India’s Oyo Hotels is offering one of the steepest margins in U.S. leveraged loans this year. The $600 million sale is being offered at a spread of 8.5 percentage points over the benchmark London interbank offered rate and at a discount of between 96 cents to 97 cents on the dollar. The company is looking to shore up its finances with Covid-19 cases in the country decimating travel demand. That puts the all-in yield at 10.3% to 10%, according to calculations by Bloomberg.

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In distressed debt, Sinclair Broadcast Group is in active talks with creditors to its Diamond Sports unit who began signing non-disclosure agreements in recent days, Bloomberg reported.

In bankruptcy court, opioid makers Mallinckrodt Plc and Purdue Pharma LP are both scheduled to seek court approval of their disclosure statements on May 26. Purdue has said it may need to delay the hearing as it negotiates with creditors.

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