This report provides daily credit market insights, highlighting a favorable outlook for the Aerospace & Defense sector and a tactical downgrade for Rackspace. It also discusses shifting trends in US life insurance bond allocations toward high-quality public credit.
Key Takeaways
- 1.J.P. Morgan remains Overweight on the Aerospace & Defense sector, expecting continued outperformance of the JULI index driven by high credit quality and OEM growth.
- 2.Rackspace downgraded to Neutral for both issuer and first-lien debt following significant equity and debt price appreciation; unsecured debt downgraded to Underweight.
- 3.US life insurers are rebalancing portfolios back toward public High Grade (HG) bonds while reducing exposure to High Yield (HY) and non-index securities.
Table of Contents
- Feature
- Rackspace: AMD+RAX+MOU = Downgrading to Neutral after Strong Price Appreciation
- Head of North America Credit Research and Strategy
- Strategy & Sector Commentary
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Authors
Tarek Hamid
Securities
HIILDOSBARackspace
Themes
Aerospace & Defense OutperformanceInstitutional Portfolio Rebalancing
Regions
North AmericaUnited States