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

6 July 2026

European and US Credit: FixedCredit Income

Weekly Chartpack

An overview of credit markets

◆ Recent softness in spreads was partially reversed last week Tom Russell, CFA

Credit Strategist

◆ The tightening was stronger in USD cash credit markets than HSBC Bank plc

thomas.russell@hsbc.com

their European counterparts… +44 20 3359 5666

Song Jin Lee, CFA

◆ …while CDS spreads in Europe have now rallied to their Global Head of Credit Strategy

HSBC Bank plc

tightest levels in the past three months songjin.lee@hsbc.com

+44 20 7991 5259

Spreads rallied across cash credit and CDS indices last week on both sides of the Dominic Kini

Green Bond & Credit Strategist

Atlantic, with HY compressing relative to IG. Cash remains mostly wider on the month. HSBC Bank plc

USD credit outperformed EUR peers in both IG and HY (p1). This broad move tighter dominic.kini@hsbcib.com

+44 20 7991 5599

wasn’t without some pockets of weakness. Comms lagged behind slightly in USD IG

(p11), with Comcast the worst performing large-cap issuer (p15) on the back of its

upcoming demerger, and Fitch placing it on rating watch negative (Bloomberg, 30 June

2026). In EUR IG, the worst performing large-cap issuer was Teleperformance, the

French call-centre company, driven by AI worries (p9). This followed a weak earnings

release from its US peer, Concentrix, with warnings that clients are increasingly turning

to AI to handle customer service (Bloomberg, 30 June 2026).

In the US, slightly softer-than-expected payrolls data weighed on Treasury yields and

drove total returns negative for USD IG, even as spreads tightened. The size of the

rally in USD HY spreads helped support better returns there on both a total and an