JPM High-Yield and Leveraged Loan Morning Intelligence

研报英文原文证据摘录

JPM High-Yield and Leveraged Loan Morning Intelligence

P. Morgan; LSEG Lipper/Refinitiv

--High-Yield and Leveraged Loan Market Brief: High-yield bond prices rallied by the most in 1.5

months on Thursday (+$0.16 d/d, +0.29% d/d HYG) alongside a +1.6% gain in the S&P 500 and

unchanged 10yr Treasury yields as Tech stocks led the rally in equities. Meanwhile, Brent declined $2 to

$89 as markets reassess supply risks amid signs of improvement in shipping activity through SoH. On the

data front, continuing claims fell to 1.782mn while core PCE surprised to the downside, rising just

0.13%m/m. High-yield bond yields and spreads declined 8bp and 6bp on Thursday to 7.49% and

317bp, which are up 24bp and 11bp in July and are up 71bp and 3bp YTD. For reference, spreads

touched a post-GFC low of 295bp on January 22nd and a YTD high of 373bp on March 30th. BBs (+0.17%

d/d) underperformed Single-Bs (+0.20% d/d) and CCCs (+0.20% d/d). And from a sector stance,

Cable/Sat. (+0.59% d/d) and Technology (+0.49% d/d) outperformed the index whereas Telecom (+0.02%

d/d) and Autos (+0.04% d/d) underperformed. Notably, the HPC subsector tightened 18bp yesterday to

400bp, partially reversing this week’s move. July’s 114bp of widening in the HY HPC index (-18bp d/d

to 400bp, JHYSHPC) has been accompanied by 55bp of widening in an IG AI Hyperscaler Liquid Basket

(182bp, JPAIHYRS). These conditions are also being accompanied by decompression with CCC spreads

(900bp) hovering near its high since April 2025 and the CCC/BB spread (703bp) near its widest level since

November 2023. By rating, BB bond yields are now 6.31% (-6bp d/d), B yields are 7.58% (-9bp d/d), and

CCC yields are 13.28% (-11bp d/d). And BB spreads are now 197bp (-4bp d/d, +11bp MTD), B spreads