European and US Credit: Weekly Chartpack An overview of credit markets

Research evidence excerpt

European and US Credit: Weekly Chartpack An overview of credit markets

11 May 2026

European and US Credit: FixedCredit Income

Weekly Chartpack

An overview of credit markets

◆ Beyond modest decompression in USD HY, last week saw Tom Russell, CFA

global credit spreads grind slightly tighter Credit Strategist HSBC Bank plc

thomas.russell@hsbc.com

◆ Strong corporate earnings remain a tailwind, and US labour +44 20 3359 5666

market data also holds up Song Jin Lee, CFA

European & US Credit Strategist

HSBC Bank plc

◆ We have recently looked at the second-order impacts of the songjin.lee@hsbc.com

disruption to supply chains in the Middle East +44 20 7991 5259

Dominic Kini

Green Bond & Credit Strategist

USD HY had perhaps got a bit ahead of itself in recent weeks, reaching its tightest HSBC Bank plc

level in the last three months, and as such decompressed slightly last week. This dominic.kini@hsbcib.com

+44 20 7991 5599

move wider however was the exception rather than the rule, with other global credit

markets grinding slightly tighter in cash and the positive momentum continuing in

CDS indices (p1). Recent outflows from USD IG mutual funds showed some signs of

stabilising and even reversing last week as the segment attracted slight inflows (p29).

Risk sentiment was supported by the ongoing strength of the US earnings season as

well at the robust labour market data, with the revisions for March, the last two

months of nonfarm payroll growth has been the strongest since 2024. However, this

came alongside softening consumer sentiment, as the University of Michigan’s index

reached its lowest reading on record.

As the conflict in the Middle East rolls on, we think it is now time to look past the

immediate impact of disrupted supply chains and investigate where potential second-