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Corporate Credit Update: Off Early Highs

US

Fairly resilient, investment-grade corporate credit risk easing off highs as stocks remain weaker - but recovering off midmorning lows. SPX emini futures currently -56.75 (-1.43%) at 3915.5, Dow Industrials -164.94 (-0.52%) at 31717.62, Nasdaq -302.7 (-2.6%) at 11233.37.

  • Investment grade risk measured by Markit's CDXIG5 index at 88.822 (+0.557) vs. early session high of 91.024; CDXHY5 high yield index at 99.582 (-0.154).
  • Outperforming credit sectors (tighter or least wide): Communications (-0.7) followed by Health Care (-0.5) and Consumer Staples (-0.4)
  • Lagging sectors (wider or least narrow): debt for Materials underperforming (+1.4), followed by Financials/subordinated (+0.9) and Consumer Discretionary (+0.7).

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