Credit Calls

Research evidence excerpt

Credit Calls

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

10 July 2026

Friday, July 10, 2026

Feature Head of North America Credit

Research and Strategy

Transportation Credit: Reshuffling Rail / Parcel Recs: CNRCN N to UW, AC Tarek Hamid

BNSF UW to N, UNP UW to N, NSC N to OW, UPS OW to N (Mark Streeter,

(1-212) 834-5468

CFA) tarek.x.hamid@jpmorgan.com

Last month (10-June) we upgraded our sector view on Rail credit from J.P. Morgan Securities LLC

Underweight to Neutral based on multiple factors, as outlined below (click here for

the report):

“Our call entering the year on Transportation was Neutral with mixed results YTD. Credit Calls is our daily compilation of

Specifically, on an excess return basis, Transports have slightly outperformed, research reports from High Grade and

particularly the longer duration subsectors of Rails and Freight while the shorter- High Yield corporate credit analysts

duration Aviation credits have lagged (in part because of the curve but of course and strategists.

the war in Iran / higher fuel prices have been drivers as well). As a reminder, rail

and freight credits fairly easily pass along higher fuel prices through surcharges High Grade Home Page

(slight negative lag as fuel prices spike, typically recovered when they fall). In

High Yield Home Pagecontrast, the fuel-offset for airlines typically takes months to work through the

system with 2Q fuel recoveries still <50% generically with hopes for full fuel price Daily Economic Briefing

recovery by late 2H26. On Rails, our subsector recommendation entering the year Link to US Equity Research Top Stories

was Underweight and we are upgrading back to Neutral for 2H26. One driver is the (updated 7:30am)

fact that the UNP / NSC merger timeline has been extended. We now don’t expect Link to J.P.