APAC Cross Regional Credit Weekly

Research evidence excerpt

APAC Cross Regional Credit Weekly

Matthew Hughart AC Asia Pacific Credit Research

(852) 2800-6518 14 July 2026 J P M O R G A N

matthew.hughart@jpmorgan.com

Outlook & Strategy

Summer issuance: Always a chance of thunderstorms

• HG spreads are drifting wider, with JULI hovering around 90bp or 2bp wider WTD

with the resilience driven primarily by higher all-in yields from renewed Iran tumult

that has brought JULI yields back to 5.62% or the highest since mid-May. Investors

were clearly very surprised by the unusually large $51bn of supply this week as

hyperscaler issuance is popping up in what had traditonally been a very quiet period.

With an additional $24.2bn of Amazon debt entering the index this month, AMZN

will surpass ORCL to become the largest Non-Financial issuer with market value of

$108bn or 1.2% of the index. Between this issuance and S&P’s downgrade of Oracle

yesterday to BBB-, investors are understandably skittish around hyperscalers and

questioning whether some parts of the investor base are getting closer to single-

issuer risk limits. Dealer inventories have climbed to their highest levels of the year,

with dealers acting as net buyers every day this week. That said, despite these supply

headwinds, demand remains healthy with IG funds still attracting a solid $10.5bn of

inflows this week, benefiting from quarter-end rebalance flows.

• The broader Q2 earnings picture looks very strong, with consensus expectations for

another quarter of >20% earnings growth. Bank earnings will kick-off next week

and with that the subsequent slate of bank supply ($32bn for the GSIBs), though

between higher yields and the fact that next week is the largest week of reinvestment

income for the HG market for July-August ($52bn), this is a good setup for it to be a