Corporate Credit Update: Risk Measures Inch Higher

Investment-grade corporate credit risk extended highs by midday, tracking weaker stocks (SPX Jun futures currently -38.5 (-0.93%) at 4092.5) amid increased mkt volatility and economic warnings for year end.
Earlier comments from ratings agency S&P for instance: Given the volatility and uncertainty in the issuance environment, the Company cannot affirm its previously issued guidance. Debt issuance volumes have been extraordinarily weak year-to-date. Should similar trends continue through the end of 2022, market issuance could see year-over-year declines in the high teens.
Meanwhile, JPM's Dimon warning over economy: "you'd better brace yourself" for a "non-benign environment by year end" keeping pressure on bank share.

• Investment grade risk measured by Markit's CDXIG5 index at 80.385 (+.743) -- still well off mid-May 2Y highs; CDXHY5 high yield index at 101.469 (-0.119).
• Outperforming credit sectors (tighter or least wide): Materials (-1.3) followed by Utilities and Communications, both -1.2.
• Lagging sectors (wider or least narrow): Technology (+0.1) while Financials both senior and subordinated hold around 0.0-0.2.