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Corporate Credit Update: Back to New Highs

US

Investment-grade corporate credit risk has surged back near Monday's 2Y highs Thursday as equities experience punishing sell-off: -3.49% drop in SPX to 4146.50, -4.8% in NASDAQ to 12347.99 and -3.0% in DJIA at 33035.34.

  • Investment grade risk measured by Markit's CDXIG5 index currently +5.326 at 83.527 vs. 85.238 on Monday; CDXHY5 high yield index at 101.686 (-1.226).
  • Outperforming credit sectors (tighter or least wide): Financials subordinated (-1.8) outperforms Senior (-0.4)
  • Lagging sectors (wider or least narrow): Utilities (+1.8) followed by Technology (+1.4) and Energy (+1.2)

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