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Corporate Credit Risk: Wider With a Couple Anomalies

US

Corporate credit risk mildly higher, near middle of narrow session range as equities see-saw lower. Stocks extended session lows ahead midday after holding relatively narrow session range since the open. Headline risk focus: RIA headline quoting defense minister: ARMY IS REGROUPING AT KYIV AND CHERNIHIV FRONTS AS PLANNED. While Bbg reports UKRAINE'S KULEBA: RUSSIA HAS NOT CEASED HOSTILITIES.

  • Investment grade risk measured by Markit's CDXIG5 index currently +0.378 to 66.42; CDXHY5 high yield index mildly lower at 105.602 (-.175).
  • Outperforming credit sectors (tighter or least wide): Financials (Sr) net +0.3 -- rather deceiving as broad swath of large banks/financial inst debt underperofming (GS, Blackstone, BGC< Prudential, Sumitomo). Subordinated Financials tied w/ Technology and Communications sector +0.7.
  • Lagging sectors (wider or least narrow): Health Care (+7.07) largely due to anomaly Boston Scientific (BSX) 5Y debt surging wider. Utilities a distant second (+1.4), Entergy Gulf States Louisiana debt underperforming.

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