North America Corporate Credit - Distressed, High Yield and Leveraged Loans Strategy

J.P. Morgan's North America Corporate Credit weekly strategy update covers the distressed, high-yield bond and leveraged loan markets. High-yield bond spreads tightened 5bp over the past week to 348bp with a yield of 8.37%; BB, Single-B and CCC spreads stood at 219bp, 343bp and 1091bp respectively, with CCC spreads at a high since March 2023, as decompression remained the key theme. Leveraged loan spreads widened 13bp to 500bp, the highest since April, and the share of loans trading above Par fell to a six-month low of 22%. The distressed universe kept building: sub-$80 loans rose $3bn m/m to $140bn (9.1% of outstandings vs. 4.8% a year ago), 39% of which is Technology, 13% Services and 9% Healthcare;