Cravath Publishes Finance & Capital Markets Quarterly Review for Q1 2026

On May 22, 2026, Cravath published the latest edition of its Finance & Capital Markets Quarterly Review, which provides insight into practical points, key takeaways and relevant developments related to the bond, equity and loan markets and restructuring activity during the first quarter of 2026. Highlights from this edition include:

MARKET TRENDS

• On a quarter-over-quarter basis for Q1 2026 relative to Q4 2025, U.S. financing activity increased for investment-grade bonds and leveraged loans, was essentially flat for high-yield bonds, increased modestly for follow-on equity offerings, but decreased for IPOs.
• On a year-over-year basis for Q1 2026 relative to Q1 2025, U.S. financing activity increased for IPOs and follow-on equity offerings, but decreased for high-yield bonds, investment-grade bonds, and leveraged loans.
• Treasury yields rose across maturities during Q1 2026, leading to a modestly higher rate environment heading into Q2.

OTHER DEVELOPMENTS

• Enforcement Manual Update. The SEC’s Division of Enforcement released a comprehensive revision to its Enforcement Manual—the first major update since 2017—formalizing the Wells process with standardized submission timelines and mandatory post-Wells meetings with senior leadership.
• Proposed Rule for Semiannual Reporting. The SEC issued a proposing release that would amend Rules 13a-13 and 15d-13 of the Securities Exchange Act of 1934 to allow optional semiannual reporting for public companies.
• FPI Section 16(a) Reporting. Section 16(a) reporting obligations for directors and officers of foreign private issuers took effect as of March 18, 2026, though the SEC granted temporary relief for those affected by the Iran conflict.
• Crypto Updates. The SEC and CFTC jointly issued an interpretive release providing comprehensive guidance on the classification of crypto assets and the application of federal securities laws to different types of digital assets and transactions.

Please click here to read the full report.