Credit Calls

This report provides a midyear outlook for high-yield credit, advising defensive positioning amidst macro uncertainty and forecasts of widening spreads. Geopolitical volatility continues to influence asset prices across credit and equity markets.

Key Takeaways

• 1.J.P. Morgan forecasts high-yield bond spreads to widen to 350bp by year-end 2026.
• 2.The firm recommends a defensive portfolio strategy, specifically advising an Overweight position on BBs and Underweight on CCCs.
• 3.Geopolitical tensions regarding the Middle East and US-Iran relations continue to drive intra-week volatility in credit and equity markets.

Table of Contents

• Strategy & Sector Commentary
• Cracking Credit: JPM High Grade & High Yield Chemicals Weekly
• Credit Strategy Weekly Update: High Yield and Leveraged Loan Research
• Electric Utilities & Power: Sparking Credit: Weekly Briefing
• HG & HY Consumer Checkup
• HG & HY Food for Thought
• HG & HY Weekly Register
• High Grade Automotive: Weekly Road Trip
• High Yield Energy: Fracking Credit
• Important Disclosures

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