Telecommunications High Yield Weekly: Weekly Update

Research evidence excerpt

Telecommunications High Yield Weekly: Weekly Update

News Summary

Telecommunications sector performance for the week ended July 17, 2026

• The ICE BofA High Yield Telecommunications Index returned -0.5% over the week

(Thursday to Thursday) and currently offers a YTW of 7.9%; this compares to a

weekly return of 0.0% and a YTW of 7.1% for the ICE BofA High Yield Master index.

HY AI data centers / WULF Compute – NY issued temporary data center

moratorium, we believe WULF Compute not impacted

• New York state issued an executive order which established a one-year moratorium

on environmental permits for new data centers with electrical demands of 50MW or

greater while the state develops a new regulatory framework. Per our

understanding, projects that have completed applications with the New York State

Department of Environmental Conservation (DEC) by July 14, 2026 will not be

subject to the moratorium. And in effect, projects already under construction and

possessing all required DEC discretionary environmental permits will not be

impacted.

• Per our understanding, TeraWulf’s Lake Mariner, NY data center facilities held within

the WULF Compute special-purpose entity, which is the issuer of $3.2 billion of

7.75% secured notes due 2030, should not be impacted by the order. The WULF

Compute facilities are currently in construction, with some already operational, and

in 2022 the project went through an environmental review with DEC, after which

DEC determined the project would not have a significant adverse environmental

impact.

Viasat – Jury decided Kioxia owes Viasat $229MM for patent infringement

• A jury in a Texas U.S. district court decided that Kioxia owes Viasat $229 million for

infringing on a flash memory patent (Viasat said it developed improvements to