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Corporate Credit Risk: Continued Improvement


Third consecutive session of improved corporate credit risk Thursday, new lows for March as investment grade risk measured by Markit's CDXIG5 index declines -1.725 to 65.595, as stocks climb to modest session highs early in the second half: SPX eminis +20.0 at 4369.5.

  • Markit's CDXHY5 high yield index mildly higher at 105.625 (+.277).
  • Cross-market, carry-over support with Hang Seng index on highs (HSI +1413.73 at 21501.23) after Wed's annc China would "actively introduce policies that benefit markets". Stock support notable in the face of rebounding crude prices (WTI +7.0 at 102.05), while traders noted technical buying carried over from post-FOMC trade.
  • Outperforming sectors (tighter or least wide) includes: Communications sector lead for a second day -7.4, notable narrowing in Weibo (-23) and Baidu Inc (-17) bond risk; T-Mobile, AT&T, Vodaphone, Verizon and BT all clustered nearby.
  • Lagging sectors (wider or least narrow): Utilities (-4.8) and Materials (-4.2) showing least improvement in investment grade sector.

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