MNI US Credit Weekly

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Executive Summary: 

• Spreads finished the week on average flat at ~76bps with modest strength in Tech and Energy while Healthcare was weak on CMS headlines. The January supply deluge continued this week with jumbo deals from AT&T, IBM, JPM and MS which brought January supply above $200bn and marked the 5th largest supply month ever.  February doesn’t appear to be giving any breathing room with sell-side desks calling for $185bn-$200bn in supply.
• Macro this week saw a hawkish shift in Fed leadership and a steady FOMC, supporting the USD as metals pulled back from highs. Meanwhile, the ECB and BoE are expected to remain cautious.
• Fund flows increased in IG and in HY. In equities, US flows turned positive this week after significant outflows last week.
• Supply was significant with this week’s deluge brining January 2026 to the 5th busiest month on record.  Even with the supply binge, overall secondary spreads held in relatively well.