Volatility hit the US high-yield bond market last week, bringing with it a much-needed reality check that bonds can go down as well as up, and signalling that issuers may have to offer more concessions to get deals away. That was somewhat evident on Friday as paragon offshore , which has been marketing its high-yield deal all week, widened guidance by 50bp on its dual-tranche issue - a rare occurrence in the market where issuers have been squeezing pricing for months. One high-yield investor said the revisions to the deal, which saw price talk revised to 6.75% from 6.25% on the eight-year and to 7.25% from 6.75% on the 10-year, were also credit-specific but that the recent softness had not helped.
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