Cracking Credit: JPM High Grade & High Yield Chemicals Weekly

Research evidence excerpt

Cracking Credit: JPM High Grade & High Yield Chemicals Weekly

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

10 July 2026

Cracking Credit

JPM High Grade & High Yield Chemicals Weekly

North America Corporate Credit -

Chemicals and Energy (HY)

Aaron Rosenthal, CFA AC

(1-212) 270-4584

aaron.rosenthal@jpmorgan.com

Welcome to this week's issue of Cracking Credit. JULI Chemicals (ex EM) has Elle Boyd

returned 118bp YTD compared to the total return of 18bp for the broader JULI (ex (1-212) 270-7283

elle.boyd@jpmchase.com

EM). Over the last week, Chemicals has returned -51bp vs -52bp for the broader JULI. J.P. Morgan Securities LLC

Our J.P. Morgan HY Chemicals Index has returned 447bp year to date compared to

the total return of 212bp for the broader J.P. Morgan HY Index. Over the last week,

Chemicals has returned 9bp vs 8bp for the broader HY Index.

Key News This Week:

• The NAM June polyethylene contract settled Thursday -15cpp (~$331/MT)

m/m. Recall the May contract rolled flat m/m (April +30cpp m/m). DOW in

early June announced efforts to push for a +20cpp increase while other

producers were initially seeking +10cpp.

• The NY Attorney General filed a lawsuit against multiple companies

(including CC, CTVA, and DD) for alleged PFAS pollution through the use in

consumer products on Thursday. Note that a trial related to Fayetteville (NC)

and resident property damage claims against CC and DD kicks off on Monday.

• On Monday, Solstice announced the acquisition of Element Solutions in a cash-

and-stock transaction valued at ~$14.5 billion, including the assumption of net

debt (expected close in 1H27). SOLADV secured an initial $4.7 billion bridge

commitment to fund the cash consideration (along with cash from the balance

sheet).