High Yield Bond and Leveraged Loan Market Monitor: Leveraged loan spreads widened to a 2.5-month high accompanied by elevated sectoral dispersion

Research evidence excerpt

High Yield Bond and Leveraged Loan Market Monitor: Leveraged loan spreads widened to a 2.5-month high accompanied by elevated sectoral dispersion

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

01 July 2026

High Yield Bond and Leveraged

Loan Market Monitor

Leveraged loan spreads widened to a 2.5-month high

accompanied by elevated sectoral dispersion

• High-yield bond spreads were somewhat stable in June as progress was North America Corporate Credit -

made on ending the US-Iran conflict alongside a much more hawkish than Distressed, High Yield and

expected Fed outcome, resilient macro data, accelerating inflows, and an active Leveraged Loans Strategy

capital market. High-yield bond yields and spreads rose 15bp and 1bp in Nelson Jantzen, CFA AC

June to 7.25% and 306bp, which are up 47bp and down 8bp YTD. And the (1-212) 270-1169

HY index provided a modest +0.3% gain in June, which improved year-to- nelson.r.jantzen@jpmorgan.com

J.P. Morgan Securities LLC

date gains to +2.1%, with Single-Bs (+2.4%) outperforming BBs (+2.0%) and

Tony Linares

CCCs (+1.5%). Telecom (+4.9%) has been the strongest performer in 2026,

(1-212) 270-3285

followed by Chemicals (+4.4%) and Energy (+4.0%) with Paper/Pack. (-0.8%) tony.linares@jpmorgan.com

and Cable/Sat. (-0.0%) lagging. J.P. Morgan Securities LLC

• Leveraged loan spreads widened to a 2.5month high in June, accompanied Nimai Rathi

by elevated sector dispersion amid rapidly evolving Fed expectations, a less (91-22) 6157 5898

nimai.rathi@jpmchase.com

supportive technical, and renewed weakness in the Software space (-1% in J.P. Morgan India Private Limited

June). As well, the % of loans trading above par slid 17% m/m to a 2.5month

Josh M Friedman

low of 24%. Software spreads widened 74bp to a fresh high of 825bp (to (1-212) 834-4674