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Corporate Credit Risk Update: Receding Off New 2Y Highs

US

Investment-grade corporate credit risk receding after climbing to new 2Y highs this morning, slight cooling as stock indexes inch off lows: SPX emini futures currently -9.5 (-0.24%) at 3914.75, Dow Industrials -219.19 (-0.70%) at 31275.38, Nasdaq +71.1 (0.7%) at 11494.48.

  • Investment grade risk measured by Markit's CDXIG5 index at 90.447 (-.346) vs. vs. 93.659 high; CDXHY5 high yield index at 99.321 (+0.065).
  • Outperforming credit sectors (tighter or least wide): Energy (+0.6), Communications (+0.8) followed by Technology (+1.2)
  • Lagging sectors (wider or least narrow): Consumer Discretionary (+2.6) and subordinated Financials (+2.5).

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