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Corporate Credit Update: Risk Cools as Stocks Post Decent Gains

US

Investment-grade corporate credit risk cooling as stocks continue to climb past midday. SPX emini futures currently +68.25 (1.75%) at 3967.5, Dow Industrials +653.25 (2.09%) at 31912.41, Nasdaq +154.6 (1.4%) at 11505.75.

  • Off last Friday's 2Y highs, Investment grade risk measured by Markit's CDXIG5 index at 87.677 (-2.909) vs. early session high of 90.501; CDXHY5 high yield index at 99.793 (+0.715).
  • Outperforming credit sectors (tighter or least wide): Materials (-2.1) followed by subordinate d Financials (-2.0) and Financials Sr (-1.8).
  • Lagging sectors (wider or least narrow): Industrials and Technology (-0.7), followed by Consumer Staples (-1.1).

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