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

31 July 2026

Credit Strategy Weekly Update

High Yield and Leveraged Loan Research

• High-yield bond spreads widened modestly over the past week as investors North America Corporate Credit -

absorbed a Fed outcome, solid earnings, sector dispersion and a lighter Distressed, High Yield and

calendar ($3.0bn). Meanwhile, 2Q results for HY companies are off to a Leveraged Loans Strategy

strong start with earnings beating at an exceptional rate and guidance also very Nelson Jantzen, CFA AC

strong (High Yield Earnings Tracker). And widening 39bp this week, HY HPC (1-212) 270-1169

index spreads are 400bp or 114bp wider in July. High-yield bond yields nelson.r.jantzen@jpmorgan.com

J.P. Morgan Securities LLC

declined 4bp while spreads widened 4bp w/w to 7.49% and 317bp, which

Tony Linares

are up 24bp and 11bp in July and up 71bp and 3bp YTD. HY bonds are

(1-212) 270-3285

providing a modest -0.2% loss in July with Energy (+0.3%) and Financial tony.linares@jpmorgan.com

(+0.3%) outperforming and Cable (-1.2%) and Consumer Prod. (-1.1%) J.P. Morgan Securities LLC

underperforming. HY bonds are now providing a +1.9% gain in 2026. Nimai Rathi

• Leveraged loan prices declined modestly this week (-$0.10 w/w) and the (91-22)nimai.rathi@jpmchase.com6157 5898

asset class is sharply outperforming broader markets in July (+0.8%) led J.P. Morgan India Private Limited

by gains in AI exposed sectors (Tech +1.6%, Financials +1.2%, Healthcare

Josh M Friedman

+1.0%). As well, loans are outperforming HY bonds by the second widest (1-212) 834-4674

margin since Oct. 2024. Loan yields declined 5bp to 8.96% this week, while josh.friedman@jpmchase.com