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

24 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

• High-yield bond yields rose 26bp to a 4-month high this week, and higher- J.P. Morgan Securities LLC

quality spreads widened off a post-GFC low alongside a surge in rates and Tony Linares

oil amid escalating tensions in the Middle East. As well, AI capex concerns (1-212) 270-3285

produced sharply higher spreads in the IG hyper-scalers and HY data tony.linares@jpmorgan.com

center complex. For context, July’s 74bp of widening in the HY HPC index J.P. Morgan Securities LLC

(360bp, JHYSHPC) was accompanied by 55bp of widening in an IG AI Nimai Rathi

Hyperscaler Liquid Basket (182bp, JPAIHYRS). These conditions are also (91-22) 6157 5898

being accompanied by the widest CCC spreads (889bp) since April 2025. HY nimai.rathi@jpmchase.com

J.P. Morgan India Private Limited

bond yields and spreads rose 26bp and 6bp over the past week to 7.53% and

Josh M Friedman 313bp, respectively. BB, B, and CCC spreads are -12bp, +6bp, and +131bp

(1-212) 834-4674

YTD, respectively. HY bonds are now providing a +1.67% gain in 2026 with josh.friedman@jpmchase.com

Energy (+4.4%), Chemicals (+4.2%), and Telecom (+4.1%) outperforming. J.P. Morgan Securities LLC

• Leveraged loan prices declined $0.06 w/w and outperformed the broader

market amid light capital market activity, a hawkish Fed narrative, and

stability in sectors experiencing AI disintermediation concerns. Leveraged

loan yields and spreads (3yr) rose 22bp and 3bp w/w to 9.01% and 491bp,