Credit Strategy Weekly Update: High Yield and Leveraged Loan Research

Research evidence excerpt

Credit Strategy Weekly Update: High Yield and Leveraged Loan Research

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

10 July 2026

Credit Strategy Weekly Update

High Yield and Leveraged Loan Research

North America Corporate Credit -

Distressed, High Yield and

Leveraged Loans Strategy

Nelson Jantzen, CFA AC

(1-212) 270-1169

nelson.r.jantzen@jpmorgan.com

• High-yield bond spreads tightened 5bp to 304bp and yields remained in J.P. Morgan Securities LLC

the middle of a very tight three-week range (7.22% to 7.29%) this week Tony Linares

despite fading prospects for US-Iran diplomacy. Note next week’s calendar (1-212) 270-3285

brings a slate of economic data (CPI, PPI, Retail Sales), the start of earnings tony.linares@jpmorgan.com

season, and Fed Chair Warsh will also testify before the House and Senate for J.P. Morgan Securities LLC

the first time. BB spreads are now 184bp (-4bp w/w), B spreads are 319bp (-8bp Nimai Rathi

w/w), and CCC spreads are 868bp (+10bp w/w). BB, B, and CCC spreads are (91-22) 6157 5898

-19bp, -4bp, and +111bp YTD, respectively. Notably, BB and B spreads are nimai.rathi@jpmchase.com

J.P. Morgan India Private Limited

only 2% and 9% above their post-GFC low while CCC spreads are 56% above.

Josh M Friedman

• Leveraged loan prices rose $0.13 this week and are now $0.24 above the (1-212) 834-4674

recent low led by a tentative bounce in Software off the lows (+1.16% July). josh.friedman@jpmchase.com

For context, Software spreads tightened 25bp over the past week to 795bp (to J.P. Morgan Securities LLC

maturity) which is still 276bp wider year-to-date. And amid decoupling, a

notable 57% of loans are now trading above $99.5 with July’s +0.42% gain

improving the year-to-date return to +1.91% (+2.80% ex-Software).

• We recently published our Default Monitor.