Iran Said to Have Rejected US Ceasefire Proposal; US Import Price Index Shows Inflationary Pressures

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March 26, 2026

Credit Ratings
Macro News

Short-end US Treasury yields inched higher by 4-5bp while the long-end remained steady. On the geopolitical front, Iran shared a proposal to the US that included a guarantee of no further attacks on the nation, war damage reparations, and closure of US military bases in the Persian region. Meanwhile the US shared a 15-point ceasefire proposal to Tehran that included opening the Strait of Hormuz, limiting the number and range of its missiles, and Iran stopping its nuclear capabilities and facilities. Iran is said to have rejected the proposal by the US, with no certainty now on the progress of talks. Brent Crude continues to trade at near $98/bbl. The Import Price Index reading for February indicated inflationary pressures, rising 1.3% MoM, higher than the surveyed 0.3%. The core reading (ex-petroleum) rose 1.2%, again higher than the surveyed 0.4%. Separately, the US Treasury’s 5Y note auction witnessed soft demand, tailing by 1.4bp, with a bid-to-cover ratio of 2.29x.

Looking at US equity markets, the S&P and Nasdaq ended higher by 0.5% and 0.8% respectively. US IG CDS spreads widened by 1.2bp and HY CDS spreads were 6.4bp wider. European equity indices ended higher across the board. The iTraxx Main CDS spreads were 2.7bp tighter while the Crossover CDS spreads were 2.7bp tighter. Asian equity markets opened lower this morning. Asia ex-Japan CDS spreads tightened by 3.1bp.

New Bond Issues

New Bond Issues 26 Mar 26

Coöperatieve Rabobank UA/NY raised $`1.35bn via a two-part deal. It raised $750mn via a 3Y bond at a yield of 4.322%, 25bp inside initial guidance of T+70bp area. It raised $600mn via a 3Y FRN at SOFR+65bp vs. initial guidance of SOFR equivalent area. The senior preferred notes are rated Aa2/A+/AA-. Proceeds will be used for general corporate purposes.

Apollo Global raised $750mn via a 10Y bond at a yield of 5.702%, 28bp inside initial guidance of T+165bp area. The senior unsecured note is rated A2/A/A. Proceeds will be used for general corporate purposes, including repurchasing its $500mn 4.4% 2026s and to pay related fees and expenses.

SMBC and SMFG raised a combined €2bn via a two-part offering:

SMBC raised €1bn via a 4Y bond at a yield of 3.536%, 35bp inside initial guidance of MS+105bp area. The senior unsecured note is rated A1/A. Proceeds will be used for general corporate purposes.
SMFG raised €1bn via an 8NC7 bond at a yield of 3.961%, 35bp inside initial guidance of MS+140bp area. The senior unsecured note is rated A1/A-. Net proceeds will be used for providing debt or loan financing to SMFG’s subsidiaries or otherwise used for general corporate purposes.

DNB Bank raised $750mn via a 6NC5 bond at a yield of 4.832%, 40bp inside initial guidance of T+112.5bp area. The senior non-preferred note is rated A2/A. Proceeds will be used for general corporate purposes.

Nippon Life raised $1.85bn via a two-trancher. It raised $1.1bn via a 5Y bond at a yield of 4.748%, 42bp inside initial guidance of T+120bp area. It also raised $750mn via a 7Y bond at a yield of 5.046%, 45bp inside initial guidance of T+135bp area. The senior unsecured notes are unrated. Proceeds will be used for general corporate purposes.

New Bonds Pipeline

KOMIR $ 5Y/5Y FRN bonds

Rating Changes

Moody’s Ratings upgrades nine offshore Chinese financial leasing entities’ ratings
LSB Industries Inc. Upgraded To ‘B+’ On Operational Improvement, Debt Repayment, And Supportive Nitrogen Market
Fitch Downgrades Cleveland-Cliffs’ IDR to ‘B+’; Outlook Stable
Turkish Appliances Maker Arcelik Downgraded To ‘B+’ On Protracted Deleveraging Prospects; Outlook Negative
Fitch Downgrades Orbia to ‘BB+’; Outlook Stable
Fitch Revises Klabin’s Outlook to Positive; Affirms IDR at ‘BB+’
Fitch Revises Tupras’s Outlook to Positive; Affirms Rating at’ BB-‘
Fitch Revises IAMGOLD’s Outlook to Positive; Affirms IDR at ‘B+ ‘

Term of the Day: Confidential Filing

A confidential filing typically pertains to IPOs or pre-filing where companies submit their Draft Red Herring Prospectus to regulators privately, rather than publically. This allows companies to receive feedback from the regulator and refine their financial data while keeping details private, thereby mitigating the risk of a public backlash if the listing is delayed. Foreign companies typically use this to manage compliance with the listing country’s rules without disclosing confidential data prematurely.

Talking Heads

On Reiterating Fed Rate Cut Call Despite Iran War – Rick Rieder, BlackRock

“Small businesses, young people, low income, are really getting hurt by this interest rate”… Fluctuating energy prices may justify some patience in lowering rates, but the Fed should still move quickly to bring them.

On US Credit Market Being More Dysfunctional in March – NY Fed

“Credit market functioning deteriorated over the past month. The investment-grade CMDI sector increased more than its high-yield counterpart”

On Chinese Bonds Appealing as Reserve Assets – Gavekal

“Instead of trade wars, we could see trade deals, more solar panels to the US, more freely flowing rare earths, a stronger renminbi… the marginal bid would shift away from gold and US Treasuries and toward renminbi and other Asian-currency-denominated assets that offer a yield”

Top Gainers and Losers- 26-Mar-26*