The Weekend Spread: What‘s Resonating?: US Financials Sector Specialist Commentary Banks • Insurance • Diversified Financials

Research evidence excerpt

The Weekend Spread: What‘s Resonating?: US Financials Sector Specialist Commentary Banks • Insurance • Diversified Financials

Rob O'Dwyer - Specialist Sales - US Financials AC North America Specialist Sales J P M O R G A N

rob.odwyer@jpmorgan.com JPM | US Fins | The Weekend

J.P. Morgan Securities LLC Spread

02 August 2026

picked with this group since the accounting is far from clean but here’s what we can’t argue about: Inflows remain at or

near record levels; FRE continues to compound at double digit rates; realizations are improving; and private credit remains a

source of growth despite some of the doomsday predictions from earlier this year. Furthermore, RE and digital infrastructure

trends seem to be supportive tailwinds in the near-to-medium term. While there is a thought that these stocks are still “too hard”,

you can make an argument here that the operating backdrop is arguably the healthiest it has been in several years. My takeaway

remains that the market is assigning an AI-related risk premium to a group whose underlying results continue to improve. KKR's

record monetization quarter and growing realization activity across the industry were perhaps the most important developments

this quarter, providing evidence that it’s unlikely that these will be zombie vehicles for years ahead, simply working hard to turn

assets. The setup continues to favor firms with durable fee streams, growing credit franchises, and multiple paths to earnings

growth even if private market valuations eventually moderate. I continue to like ARES & KKR.

Info Services & Capital Markets Themes

The ratings agencies and M&A boutiques told a remarkably consistent story this quarter: capital markets activity continues to

strengthen and appears increasingly broad-based.