Credit Strategy Weekly Update: High Yield and Leveraged Loan Research

Research evidence excerpt

Credit Strategy Weekly Update: High Yield and Leveraged Loan Research

J P M O R G A N North America Credit Research

26 June 2026

Credit Strategy Weekly Update

High Yield and Leveraged Loan Research

• High-yield bond spreads widened 11bp this week to 311bp and CCCs North America Corporate Credit -

underperformed (+34bp w/w) as Oil prices slid and equity markets (led by Distressed, High Yield and

Technology) consolidated their recent gains.This week our US equity Leveraged Loans Strategy

strategists raised their YE26 price target for the S&P500 to 7,800, and our Oil Nelson Jantzen, CFA AC

strategists marked down the 2H26 outlook for Brent to a still elevated $86 in (1-212) 270-1169

3Q and $80 in 4Q. Meanwhile, capital markets remain active, with June nelson.r.jantzen@jpmorgan.com

J.P. Morgan Securities LLC

already producing the second most volume in nine months ($34bn gross,

Tony Linares

$14bn ex-refi). High-yield bond spreads are now 4bp tighter year to date, with

(1-212) 270-3285

BB, B, and CCC spreads -11bp tighter, +5bp wider, and +86bp wider, tony.linares@jpmorgan.com

respectively. This week we had our 2026 High Yield Bond and Leveraged J.P. Morgan Securities LLC

Loan Midyear Outlook Webinar (Replay here, Midyear HY/LL Outlook Nimai Rathi

publication here). (91-22) 6157 5898

• Leveraged loan spreads rose 8bp to a multi-month high 496bp (3yr) this nimai.rathi@jpmchase.comJ.P. Morgan India Private Limited

week amid elevated sectoral dispersion, active capital markets, and a broader

Josh M Friedman

risk-off tone. A sharp decline in oil prices amid a reopening of the Strait has (1-212) 834-4674

alleviated some of the hawkish Fed narrative emanating from the most recent josh.friedman@jpmchase.com

meeting.