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

17 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

• If you find our research helpful, we kindly ask that you take the time to reflect J.P. Morgan Securities LLC

this in the Extel survey which is now open. We would appreciate your Tony Linares

consideration in the USA-High-Yield Strategy, USA-Leveraged Loan (1-212) 270-3285

Strategy, and USA-Distressed Categories. tony.linares@jpmorgan.com

• High-yield bond spreads widened modestly over the past week as investors J.P. Morgan Securities LLC

absorbed rising oil prices, a robust start to earnings season, and softer-than- Nimai Rathi

(91-22) 6157 5898

expected inflation data. And while HY funds reported their first outflow in 7 nimai.rathi@jpmchase.com

weeks, inflows resurfaced later in the week. Notably, the High-Performance J.P. Morgan India Private Limited

Computing (AI) subsector consolidated some of its YTD gains this week Josh M Friedman

(-0.9% w/w, +9.5% YTD). High-yield bond yields and spreads rose 1bp (1-212) 834-4674

and 3bp over the past week to 7.27% and 307bp, respectively, which are up josh.friedman@jpmchase.com

2bp and 1bp in July and up 49bp and down 8bp YTD. HY bonds providing a J.P. Morgan Securities LLC

+0.2% gain in July which has its YTD gains at +2.3% with Single-Bs (+2.7%)

outperforming BBs (+2.2%) and CCCs (+1.7%).

• Leveraged loans provided a gain of +0.2% over the past week with the % of

loans trading above par at a 1-month high of 37% amid resilient macro data and