Credit Calls

This report provides an update on the chemicals sector model book and an overview of 1Q26 US high-yield credit fundamentals. It highlights emerging credit metric deterioration despite solid headline earnings performance.

Key Takeaways

• 1.J.P. Morgan maintains a Neutral rating on the Chemicals sector, noting supply dislocation benefits for petrochemicals offset by pricing challenges for specialty producers.
• 2.1Q26 US high-yield credit fundamentals show signs of stress with rising leverage, declining coverage, and margin deterioration in Autos, Energy, and Paper/Packaging.

Table of Contents

• Feature
• Strategy & Sector Commentary
• Head of North America Credit Research and Strategy
• Important Disclosures
• History of Investment Recommendations
• Explanation of Credit Research Valuation Methodology, Ratings and Risk to Ratings
• Other Disclosures
• Legal Entities Disclosures and Country-/Region-Specific Disclosures