This report provides a credit market update, highlighting fundamental improvements in US Leveraged Loans and rising Foreign Attractiveness of USD IG Bonds index levels. It also notes a significant geopolitical development involving the US and Iran.
Key Takeaways
- 1.US Leveraged Loan credit metrics are improving at the margin, despite ongoing erosion in CCC-rated issuers.
- 2.The Foreign Attractiveness of USD IG Bonds (FAB) index rose to 52bp, though the future outlook for the index is pressured by hedging cost increases following the hawkish FOMC bias.
- 3.A Memorandum of Understanding between the US and Iran was signed, aiming for a ceasefire and the reopening of the Strait of Hormuz.
Table of Contents
- Strategy & Sector Commentary
- Key News This Week
- Important Disclosures
- History of Investment Recommendations
- Explanation of Credit Research Valuation Methodology, Ratings and Risk to Ratings
- Other Disclosures
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Authors
Tarek HamidNelson Jantzen, CFANathaniel Rosenbaum
Securities
J.P. Morgan HY Energy index
Themes
Leveraged Loan FundamentalsGeopolitical StabilityMonetary Policy Impact on Hedging
Regions
North AmericaOtherUnited StatesIranChina