JPM Daily Credit Strategy Update: New issues priced well wide of the index tend to perform well but the 2026 cohort is the exception thus far; Foreign Demand Monitor published

Research evidence excerpt

JPM Daily Credit Strategy Update: New issues priced well wide of the index tend to perform well but the 2026 cohort is the exception thus far; Foreign Demand Monitor published

Nathaniel Rosenbaum, CFA AC (1-212) 834-2370 Pavan D Talreja, CFA (1-212) 834-2051 North America Credit Research J P M O R G A Nnathaniel.rosenbaum@jpmorgan.com pavan.talreja@jpmchase.com

J.P. Morgan Securities LLC J.P. Morgan Securities LLC 28 July 2026

Silvi Mantri (1-212) 834-7239

silvi.mantri@jpmchase.com

J.P. Morgan Securities LLC

JPM Daily Credit Strategy Update

New issues priced well wide of the index tend to perform well but the 2026 cohort is the

exception thus far; Foreign Demand Monitor published

Yesterday, another large datacenter financing priced for a total of $12.3bn, the second largest tranche YTD after RDMICH.

Notable to us was the very wide pricing spread of 287.5bp over UST 10yr; this is the widest A or higher rated new issue in the

past 3 years. Moreover, it is the widest A+ data center financing since the Beignet 30yr bond priced at +225bp in October 2025.

We think there are two interesting takeaways from a strategy perspective:

1. The spread and duration on yesterday’s datacenter security imply an approximate excess return breakeven of ~31bp which is

3.6x higher than at the index level currently for the 30yr part of the curve and 2.2x for the 10yr part of the curve.

2. Bonds that price well wide of the index have tended to perform well in subsequent months but this hasn’t been the case so far

in 2026 (we wrote about this from a different angle recently here). To delve into this, we ran an analysis since 2020 of newly

issued bonds with issuance spreads of 2x or wider to that of the JULI spread at the same point in time. The first notable result