J.P. Morgan's credit research highlights a steepening HG credit curve while US Treasury curves flattened significantly. Concurrently, KB Home provided mixed 2Q26 results, showing solid margin performance despite revenue declines.
Key Takeaways
- 1.High Grade (HG) spread curves are steepening in the belly, with the 5s10s curve hitting its steepest level since mid-March.
- 2.KB Home reported mixed 2Q26 results with revenues down 27% y/y, though gross margins slightly outperformed expectations.
- 3.The market is increasingly pricing in a Fed hike by October 2026 as front-end yields rise.
Table of Contents
- Strategy & Sector Commentary
- Company Comments
- Head of North America Credit Research and Strategy
- Important Disclosures
- Other Disclosures
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Authors
Tarek HamidSilvi MantriArjun Chandar
Securities
KB Home
Themes
Curve SteepeningFed Hike Expectations
Regions
North AmericaUnited States