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Late Corporate Credit Update: Investment Grade Risk Mid-'22 Levels

US

Investment-grade corporate credit risk climbed to the highest levels since June 2020 late Friday as appetite for risk via stocks faltered. SPX eminis through several key support levels on the day before bouncing as Cleveland Fed Mester pushed back on any need for 75bp hike in May.

  • Investment grade risk measured by Markit's CDXIG5 index currently +3.31 to 79.271 vs. 75.892 low after the open; CDXHY5 high yield index mildly lower at 102.826 (-.639).
  • Outperforming credit sectors (tighter or least wide): Financials (Senior and subordinated) (+2.9), Industrials (+3.2) and Consumer Discretionary (+3.3)
  • Lagging sectors (wider or least narrow): Materials (+4.1) Energy sector (+4.0) and Consumer Staples (+3.5).

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