US Credit Market Liquidity: 1H26 Update: Hyperscalers Reshaping The Market Liquidity Picture

Research evidence excerpt

US Credit Market Liquidity: 1H26 Update: Hyperscalers Reshaping The Market Liquidity Picture

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

23 July 2026

US Credit Market Liquidity: 1H26

Update

Hyperscalers Reshaping The Market Liquidity Picture

US Credit Strategy

Tarek Hamid AC

(1-212) 834-5468

tarek.x.hamid@jpmorgan.com

Pavan D Talreja, CFA AC

• Liquidity increased dramatically, but that increase was concentrated in (1-212)pavan.talreja@jpmchase.com834-2051

higher-rated products. Aggregate trading activity was up +28% y/y in HG

Silvi Mantri AC versus just +5% in HY and -3% in Loans/CLOs. The same skew showed up in

(1-212) 834-7239

ETFs (+34% HG vs +4% HY) and CDX (CDX.IG +41% vs CDX.HY +10%). silvi.mantri@jpmchase.com

• AI, hyperscalers and private credit reshaped where credit trades. J.P. Morgan Securities LLC

Technology and Media were sectors with the largest turnover in both HG and

HY. Turnover in the AA-and-higher bucket grew 40% y/y and long-end

turnover increased 10% y/y due to the contribution of hyperscalers. The same

themes drove derivatives and hedging with CDX.IG volumes +41% and

Technology single-name CDS +210% vs its 4-year average, while loan and

CLO macro products’ liquidity declined.

• Portfolio trading re-accelerated sharply in HG but the liquidity dividend

is fading. HG portfolio trading jumped to a record 21% of investor activity

(+33% y/y), outpacing the growth in HY PT trading (15%). Market breadth

improvement has arguably stalled with the concentration of total trading to the

top 20% names in HG stuck at 82.3% for three straight years and rarely-traded

bonds ticking back up from their 2024 trough. On the HY side, concentration

and breadth cotninues to improve, albeit at a slower rate. We are reaching the