The 3 driving forces behind dispersion in the credit market | J.P. Morgan
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The 3 driving forces behind dispersion in the credit market | J.P. Morgan

jpmorgan 11.04.2026 1 173 просмотров

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Dispersion is here to stay, Lacey Vigmostad, Head of US CLO Origination at J.P. Morgan, shares what's driving this including, a major CLO refinancing/reset catalyst in 2026, liability management exercises that can reshuffle value and seniority, and AI/tech disruption creating clear winners and laggards across sectors. https://jpmm.com/portfolio-solutions/beta-one #credit #jpmorgan #markets Subscribe to J.P. Morgan: https://www.youtube.com/user/jpmorgan?sub_confirmation=1 About J.P. Morgan: J.P. Morgan is a leader in financial services, offering solutions to clients in more than 100 countries with one of the most comprehensive global product platforms available. We have been helping our clients to do business and manage their wealth for more than 200 years. Our business has been built upon our core principle of putting our clients' interests first. Connect with J.P. Morgan Online: Website: https://www.jpmorgan.com/ X: https://x.com/jpmorgan Facebook: http://facebook.com/jpmorgan LinkedIn: https://linkedin.com/company/j-p-morgan/ Instagram: https://instagram.com/jpmorgan/ The 3 driving forces behind dispersion in the credit market | J.P. Morgan https://youtube.com/shorts/UQ6mH85Afbo

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In the current credit environment, one theme stands out. Dispersion is here to stay. CLOs diversified actively managed loan portfolios now buy about 70% of leverage loans, so their behavior really drives the market. Three forces are widening the gap between winners and laggards. One, the technical. 400 billion of CLOs are coming out of non-call in 2026, keeping reset activity high and nudging managers out of lower rated loans and towards higher quality more liquid loans. Two, liability management exercises can really shift value and seniority, creating asymmetric downside situations for loans trading at a discount. Three, AI and tech disruption. Some sectors could gain productivity and pricing power while others could face displacement. Bottom line, most CLO managers are not feeling appropriately compensated to go down the risk curve. Quality, liquidity, and active management really matters in this environment.

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