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Corporate Credit Update: IG Risk Extends 2Y Highs

US

Investment-grade corporate credit risk is receding slightly after climbing to the highest levels since June 2020 on this morning's open -- current levels not far from Friday's highs.

  • IG credit risk largely correlated to equities this morning, earlier highs as SPX eminis added to Friday's sharp rout, receding as stocks bounce off midday lows.
  • Investment grade risk measured by Markit's CDXIG5 index currently -0.668 to 78.852 vs. 81.230 high after the open; CDXHY5 high yield index at 102.830 (+.101).
  • Outperforming credit sectors (tighter or least wide): Financials (Senior) (+0.2), Industrials (+1.2) and Health Care (+1.2)
  • Lagging sectors (wider or least narrow): Materials (+3.3) debt underperforms largely tied to sharp drop in Gold on the day (-35.50 at 1896.10)

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