Sales & Trading EMEA Macro Credit Trading

Research evidence excerpt

Sales & Trading EMEA Macro Credit Trading

Sales & Trading

EMEA Macro Credit Trading J P M O R G A N

20 July 2026

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Trader Commentaries

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iTraxx On-the-Run

• Active week with ~17bn going through the books, further escalation in the Middle East kept oil trading in the 80s and

stocks started leaking into the end of the week with weakness in tech. iTraxx however failed to decisively widen with

Main failing to break above the mid-53s as sellers of protection still stepping in on every move wider. XO/Main

decompressing into the end of the week with some big blocks of XO bought from RM accounts and macro pods, but the

flow was well contained as bank desks and HFs were always ready to take the other side. Seeing index still wide to stocks

in the recent ranges as we approach local wides but the tone in macro still doesn’t feel strong with rates still leaking,

notable on Friday some decoupling between oil and rates with a bid for treasuries as safe haven assets.

• XO/Main still trading very directionally, decompressing on the moves wider and compressing back on every rally, closing

the week around -10 on the 5:1 ratio. Snr still feel firm with skews attempting in Sub driving further compression in Sub/

Snr and snr/main still trading very range bound. Flow going through mid-week in IG-Main driving some local

outperformance of iTraxx despite the ME headlines.

Cash & ETF

• Kind of bearish week with contained move. Started the week with 2-way flow both in IG and HY: HFs unwinding their