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Corporate Credit Update: Off Early 2Y Highs

US

Investment-grade corporate credit risk surged to new 2Y highs early Friday are running mildly higher with equities weaker after midday Friday, a relative calm end to hectic policy week.

  • Investment grade risk measured by Markit's CDXIG5 index currently +0.870 at 84.327 vs. new 2Y high of 87.321 around midmorning; CDXHY5 high yield index at 101.347 (-0.303).
  • Outperforming credit sectors (tighter or least wide): Communications (+0.2) followed by Energy (+0.3).
  • Lagging sectors (wider or least narrow): Financials senior (+1.5) followed by Materials (+1.3).

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