HG Credit Foreign Demand Monitor: FAB index barely higher despite yield move as offset by overseas yields higher too; stronger APAC buying though TWD ETF outflows continue

Research evidence excerpt

HG Credit Foreign Demand Monitor: FAB index barely higher despite yield move as offset by overseas yields higher too; stronger APAC buying though TWD ETF outflows continue

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

13 July 2026

HG Credit Foreign Demand

Monitor

FAB index barely higher despite yield move as offset by

overseas yields higher too; stronger APAC buying

though TWD ETF outflows continue

North America Corporate Credit -

Investment Grade Strategy

Nathaniel Rosenbaum, CFA AC

(1-212) 834-2370

nathaniel.rosenbaum@jpmorgan.com

J.P. Morgan Securities LLC

• FAB: Our JPM Foreign Attractiveness of USD IG Bonds (FAB) index edged AC Silvi Mantri

up modestly by 1bp WoW to 52bp. The move was modest given offsetting

(1-212) 834-7239

yield moves, with USD IG Corp yields up 10bp versus global yields also up 8bp silvi.mantri@jpmchase.com

last week on average and hedging costs up 1bp. The Forward FAB vs. FAB J.P. Morgan Securities LLC

differential remains inverted, implying little further upside for the FAB. Matthew Bailey

• EMEA: For EUR investors, the USD IG yield pickup was unchanged WoW (44-20)matthew.a.bailey@jpmorgan.com7134-2384

at the 10y point at +51bp, though it did increase 3bp at the long-end to J.P. Morgan Securities plc

+52bp and is still close to its 6m high. For GBP investors, the yield pickup at

the 10y point rose by 1bp WoW to +52bp. USD IG Corps at the long-end

continue to screen more attractive versus EUR corporates for most currencies

(see Figure 5 on page 2).

• APAC: For JPY investors, the yield give improved by 10bp WoW to -37bp

despite hedging costs also up 4bp to 3.04%. Furthermore, the pickup in the

long-end for JPY investors improved by 23bp WoW to -98bp. However, the

implied forwards are pricing in a 16bp increase in JPY hedging costs over the