Barclays_US_Credit_Alpha_Roller_coaster

This document is intended for institutional investors and is not subject to all of theindependence and disclosure standards applicable to debt research reports prepared for retailinvestors under U.S. FINRA Rule 2242. Barclays trades the securities covered in this report for itsown account and on a discretionary basis on behalf of certain clients. Such trading interestsmay be contrary to the recommendations offered in this report.Please see analyst certifications and important disclosures beginning on page 50 .US Credit AlphaRoller coasterAmid intense macro volatility, we provide updated thoughtson a variety of subjects in credit. We highlight views acrossinvestment grade, high yield, loans, CLOs, derivatives,hybrids, WBS. and CMBS.US Credit AlphaOverview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3This week's tariff announcement brought some relief to a frenzied market. However, risksremain, with political and macro uncertainty still prevalent. Amid the ongoing volatility, weprefer long-end, higher-quality paper and see attractive all-in-yields in long-end single-As andBBs.US FocusMarket structure: The Friday rush. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5In 1Q25, Friday trading for index-eligible IG and HY corporate bonds in the US hit the highestlevel since 2013, making up 18% of weekly volumes. This is likely due to rising volatility,prompting institutional investors to adjust positions on Fridays to hedge against potentialweekend swings.US Investment GradeOnce bitten, twice shy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Tariff-related volatility has sent markets spiraling in both directions over the past week, andspread volatility has reached its highest level since the regional banking crisis. Single-As haveoutperformed but still look attractive, particularly in the long end. We like Big 6 sub debt here. US High YieldLife after Liberation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13High yield moved over 100bp wider in the week following "Liberation Day" and had relativelymuted participation in the "tariff pause" rally. We review which segments of the markets movedthe most and where valuations stand. FICC ResearchCredit Strategy11 April 2025SIGNATUREBradley Rogoff, CFA+1 212 412 7921bradley.rogoff@barclays.comBCI, USDominique Toublan+1 212 412 3841dominique.toublan@barclays.comBCI, USCompleted: 10-Apr-25, 22:16 GMTReleased: 11-Apr-25, 10:30 GMTRestricted - ExternalUS Leveraged LoansSifting through the bathwater. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20Loans prices have fallen sharply amid the risk-off tone. Lower quality has underperformed. Weprovide a list of loans within the LL100 that have fallen more than 2pts this month that ouranalysts think provide attractive value. Global CLOsETFs follow, not lead. . . . . . . . . .