Cracking Credit: JPM High Grade & High Yield Chemicals Weekly

Research evidence excerpt

Cracking Credit: JPM High Grade & High Yield Chemicals Weekly

Aaron Rosenthal, CFA AC North America Credit Research

(1-212) 270-4584 24 July 2026 J P M O R G A N

aaron.rosenthal@jpmorgan.com

Sector Performance & Recent Economic Data

Asset Current Level (Spread) %MTD Total Return % YTD Total Return

J.P. Morgan High Grade Chemicals Index (ex EM) 103bp -1.11% 0.79%

J.P. Morgan High Grade Index (ex EM) 92bp -1.34% -0.46%

J.P. Morgan High Yield Chemicals Index 293bp 0.06% 4.48%

J.P. Morgan High Yield Index 305bp -0.04% 2.06%

S&P Chemicals Equity Index 954 -1.92% 15.02%

S&P 500 Equity Index 7398 -1.30% 8.75%

Source: Bloomberg Finance L.P. and J.P. Morgan.

High Grade Credit

High Grade chemicals bonds have outperformed the broader High Grade market YTD. Our J.P. Morgan High Grade Chemicals

Index (ex EM) has outperformed the broader J.P. Morgan High Grade Index (ex EM) by 23bp month to date and outperformed by

125bp year to date. The HG Chemicals portfolio spread is currently 103bp, 11bp wide to the broader HG index portfolio spread of

92bp.

High Yield Credit

High Yield chemicals bonds have outperformed the broader High Yield market YTD. Our J.P. Morgan High Yield Chemicals

Index has outperformed the broader J.P. Morgan High Yield Index by 10bp month to date and outperformed by 242bp year to

date. The HY Chemicals STW is currently 293bp, 12bp tight to the broader HY index STW of 305bp.

Equities

The S&P Chemicals Equity index has outperformed the S&P 500 YTD. The S&P Chemicals index has underperformed the S&P

by 62bps month to date and outperformed by 627bps year to date.

Recent Economic Data

Indicator Period Actual Street Estimate Prior Period Comment

Fed Funds 29-Jul 375bp 375bp 375bp Futures imply a ~36% chance of a hike in July

GDP 1Q26 2.1% 1.6% 0.5%