High Yield Metals & Mining: 2026 Midyear Outlook: Is It Time for More Growth Financing?

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High Yield Metals & Mining: 2026 Midyear Outlook: Is It Time for More Growth Financing?

J P M O R G A N North America Credit Research

29 June 2026

High Yield Metals & Mining

2026 Midyear Outlook: Is It Time for More Growth

Financing?

We remain Neutral HY Metals/Mining heading into 2H26 as spreads remain North America Corporate Credit -

justifiably tight to the index. As of June 29, the HY Metals/Mining Index traded Metals & Mining (HY)

at 6.65%, ~65bp inside the JPM HY Index. The sector has returned 1.71%, roughly Arjun Chandar AC

through the midpoint of 2026 on a YTD basis, underperforming JPM HY by ~20bp. (1-212) 834-4047

HY Metals/Mining continues to be characterized by a strong BB concentration, arjun.c.chandar@jpmorgan.com

underpinning relatively tight spreads. We note that commodity prices remain J.P. Morgan Securities LLC

supportive across most of the metals complex and balance sheets remain very

strong, suggesting low defaults and continued fundamental improvement. We

would highlight names like CMC and CRS as potential rising star candidates given

scale and balance sheet strength and expect no near-term re-entrants into HY from

IG as fallen angels. We believe BB Metals/Mining names are appropriately valued

and see tactical opportunities for compression in downstream Aluminum and

Steel.

We have seen $5.3bn of new HY bond supply in HY Metals/Mining YTD and

expect more growth financing in a supportive macro environment. We are

slowly seeing the return of growth financing into the space following a decade of

largely conservative balance sheet strategy with new issues for companies like PLS

Ltd (PLSAU), a lithium miner; Worthington Steel (WS), a steel processor / service

center engaged in acquisition financing, Skeena Resources (SKECN) a single-