Cracking Credit: JPM High Grade & High Yield Chemicals Weekly

Welcome to this week's issue of Cracking Credit. JULI Chemicals (ex EM) has returned -181bp YTD compared to the total return of -302bp for the broader JULI (ex EM). Over the last week, Chemicals has returned -134bp vs -119bp for the broader JULI. Our J.P. Morgan HY Chemicals Index has returned 281bp year to date compared to the total return of 33bp for the broader J.P. Morgan HY Index. Over the last week, Chemicals has returned -164bp vs -118bp for the broader HY Index. Key news this week: WLK announced the closure of its Cologne, Germany PVC plant (~165ktpa capacity) in 1Q27 citing weak economics and expects pre-tax charges of ~$205 million across 2026/27; TROX announced an agreement with JX Advanced Metals to advance its rare earth/critical minerals strategy, funding ~$32 million on a 50/50 basis;