APAC Cross Regional Credit Weekly: Spreads widened, driven by hyperscalers

Research evidence excerpt

APAC Cross Regional Credit Weekly: Spreads widened, driven by hyperscalers

J P M O R G A N Asia Pacific Credit Research

28 July 2026

APAC Cross Regional Credit

Weekly

Spreads widened, driven by hyperscalers

• JULI spreads widened by 3bp to 94bp over the week, split between Asia Pacific Credit Research

AC hyperscalers +16bp last week to 151bp vs ex-hyperscalers just +1bp to Matthew Hughart

91bp. The index yield rose by 15bp w/w to 5.79%. (852) 2800-6518

• HG fund flows moderated to +$5.2bn of inflows (-21% w/w), well below matthew.hughart@jpmorgan.comJ.P. Morgan Securities (Asia Pacific) Limited

the four-week average of +$8.7bn and the lowest since the end of April. The

Emma Xing

slowdown was led by both ETFs and mutual funds, where ETF inflows (852) 2800-8727

declined 23% w/w to +$3.6bn, and mutual fund inflows also fell 14% w/w to emma.xing@jpmorgan.com

+$1.6bn. J.P. Morgan Securities (Asia Pacific) Limited

• Last week, $11bn of gross issuance was priced against $31bn of Soo Chong Lim

reinvestment income. Light supply cushioned the broader market, despite (852) 2800-7387

soochong.lim@jpmorgan.com

fund inflows at a three-month low with increasingly negative total returns. Our J.P. Morgan Securities (Asia Pacific) Limited

US HG team estimates that reinvestment income will fall to $28bn this week. North America Credit Research

• Investors hope wider hyperscaler spreads will slow issuance, but for Nathaniel Rosenbaum, CFA

issuers, spreads remain a minor factor in overall capital expenditure and (1-212) 834-2370

financing decisions. Issuers are not overly concerned about the impact of nathaniel.rosenbaum@jpmorgan.com

increased bond issuance on spreads, as, for most, their spreads as % of yield J.P. Morgan Securities LLC