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Corporate Credit Update: Back to Early May Lvls

US

Investment-grade corporate credit risk continues to cool, near session lows at the moment as stocks continue to march higher. SPX emini futures currently +81 (+2.04%) at 4057.75, Dow Industrials +527.06 (1.64%) at 32647.39, Nasdaq +318.9 (0.8%) at 11753.61.

  • Back to early May levels, investment grade risk measured by Markit's CDXIG5 index at 79.782 (-2.861); CDXHY5 high yield index at 101.635 (+0.843).
  • Outperforming credit sectors (tighter or least wide): Communications (-7.0) followed by Financials: subordinated (-6.9) and senior (-6.6)
  • Lagging sectors (wider or least narrow): Utilities (-5.4), Consumer Discretionary (-5.7) and Industrials (-5.8).

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