1Q26 IG Fundamentals Update: More Earnings Less Cash

1Q26 US IG credit fundamentals remained strong with EBITDA growth at its highest since 2021, but declining cash levels pushed net leverage to 2.06x.

Key Takeaways

• 1.US IG credit fundamentals were strong in 1Q26, characterized by high earnings growth and margins, despite declining cash levels.
• 2.Net leverage increased to 2.06x, its highest level since 2Q24, while gross leverage remained stable at 2.57x.
• 3.Median EBITDA growth accelerated to +8.1% YoY, the highest since 2021, driven by improved profitability.

Table of Contents

• Situation Room
• 1Q26 IG fundamentals final update: more earnings, less cash
• IG leverage: stable gross, higher net
• Further details on IG credit fundamentals
• Aggregate vs median leverages
• Debt growth
• Revenue and EBITDA growth
• Liquidity metrics
• Cash and securities
• Profitability
• Capital spending
• Methodology
• Daily supply snapshot
• Daily dealer inventories update
• Daily HG fund flows
• Daily foreign demand tracker

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