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Corporate Credit Update: IG Risk Heating Up

US

Investment-grade corporate credit risk heating up again as stocks extend lows early in second half: SPX emini futures, ESM2 currently trading 4114.0 (-44.75).

  • Investment grade risk measured by Markit's CDXIG5 index back to May 25 levels at 83.326 (+2.029); CDXHY5 high yield index at 100.886 (-0.090).
  • Outperforming credit sectors (tighter or least wide): Materials (-1.1) followed by Financials (subordinated) (0.6) and consumer Staples (-0.04).
  • Lagging sectors (wider or least narrow): Technology (+0.4), followed by Financials (SR) and Utilities, both +0.2.

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