JPM Daily Credit Strategy Update: FAB index inches higher as foreign yields decline but overnight buying down sharply to a 4m low; 2026 Mid-Year Outlook Webinar replay

Research evidence excerpt

JPM Daily Credit Strategy Update: FAB index inches higher as foreign yields decline but overnight buying down sharply to a 4m low; 2026 Mid-Year Outlook Webinar replay

Nathaniel Rosenbaum, CFA AC (1-212) 834-2370 Pavan D Talreja, CFA (1-212) 834-2051 North America Credit Research J P M O R G A Nnathaniel.rosenbaum@jpmorgan.com pavan.talreja@jpmchase.com

J.P. Morgan Securities LLC J.P. Morgan Securities LLC 30 June 2026

Silvi Mantri (1-212) 834-7239

silvi.mantri@jpmchase.com

J.P. Morgan Securities LLC

JPM Daily Credit Strategy Update

FAB index inches higher as foreign yields decline but overnight buying down sharply to a

4m low; 2026 Mid-Year Outlook Webinar replay

We published our weekly HG Credit Foreign Demand Monitor yesterday:

FAB: Our JPM Foreign Attractiveness of USD IG Bonds (FAB) index rose 2bp WoW to 49bp. The move higher was driven

by local government yields moving 9bp lower versus USD IG Corp yields down 6bp last week, partly offset by a modest move

higher in hedging costs (+1bp). That said, the Forward FAB vs. FAB differential is now inverted (discussed in more detail here),

implying no further upside for the FAB.

EMEA: For EUR investors, the USD IG yield pickup decreased by 3bp to +49bp, driven by hedging costs +2bp to 1.52%,

although they still remain at 20% of their 6m range. Similarly, for GBP investors the yield pickup fell by 4bp WoW to

+50bp. USD IG Corps at the long-end continue to screen more attractive versus EUR corporates for most currencies.

APAC: For JPY investors, the yield give fell modestly by 1bp to -43bp. For TWD investors, the yield pickup fell by 16bp

WoW to +132bp as hedging costs rose 11bp to 2.26%. That said, 6m forwards are now implying a 6bp decrease in hedging

costs for TWD investors.