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Corporate Credit Update: Off Mon's Highs for April

US

Investment-grade corporate credit risk recedes slightly, off Monday's highs for April as equities trade firmer (ESM2 +35.0) ahead start of latest earnings cycle Wed. Financials make up the bulk of releases tomorrow w/ JP Morgan, BlackRock, Citigroup, Goldman Sachs, Morgan Stanley and Wells Fargo on tap.

  • Investment grade risk measured by Markit's CDXIG5 index currently -1.821 to 71.002 vs. 73.527 high; CDXHY5 high yield index mildly higher at 104.255 (+.451).
  • Outperforming credit sectors (tighter or least wide): Energy and Communications sectors (-0.5), former as oil and gas names rebound w/rise in crude. Latter sees ATT, Comcast, Time Warner, NBC, Verizon debt risk narrowing.
  • Lagging sectors (wider or least narrow): Materials (+1.9) as precious metals mining debt underperforms. Financials, SR and subordinated (+1.5).

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