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Corporate Credit Update: Risk Heating up Again

US

Weaker consumer confidence data dampens mood for investment-grade corporate credit risk, climbing to session highs as stocks extend lows: SPX eminis -38.5 (-0.99%) at 3865.75; DJIA -166.63 (-0.53%) at 31274.65; Nasdaq -208.4 (-1.8%) at 11317.96.

  • Investment grade risk measured by Markit's CDXIG5 index at 98.287 (+3.138); CDXHY5 high yield index at 98.041 (-0.702).
  • Outperforming credit sectors (tighter or least wide): Consumer Discretionary (+0.6), Utilities (+0.7) and Industrials (+1.1).
  • Lagging sectors (wider or least narrow): Communications (+1.9), Sr Financials (+1.8) followed by Materials both +1.6.

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