MNI IG US Credit Weekly

Feb 20 26 US Credit Weekly.pdf

Executive Summary: 

• Spreads were approximately 1bp wider on the week on average as Communications and Materials weighed on the market with supply, event risk and earnings volatility.
• Macro was a reaction to the potential US strikes on Iran. Despite indications of targeted strikes intended to bring Iran back to the negotiating table, investors remained cautious. AI-related and private credit risks also drove volatility. 10Y Treasury yields failed to test the 4% level but still managed to register a fresh 2026 low
• Fund flows remained firm in US and EUR IG and equity inflows remained strong across both regions.
• Supply was lower in the holiday shortened week with $27+bn. More was issued across Non-Financials with Non-cyclicals and Utilities leading issuance. New issue concessions averaged 5.5bps.  Books were 3.5x covered on average this week and new issue talk tightened 28bps on average.