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Corporate Credit Update: Risk Metrics At Early June Lvls

US

Investment-grade corporate credit risk receded to the lowest levels since June 9 Tuesday, metrics cooling as stocks extended gains for the third consecutive session: SPX eminis currently trading +82 (2.14%) at 3916.75; DJIA +572.68 (1.84%) at 31649.35; Nasdaq +272.8 (2.4%) at 11635.69.

  • Investment grade risk measured by Markit's CDXIG5 index -4.656 to 86.632; CDXHY5 high yield index at 99.680 (+0.994).
  • Outperforming credit sectors (tighter or least wide): Energy (-2.7), while Consumer Discretionary, Industrials, Communications and Technology all clustered around -1.9-1.7.
  • Lagging sectors (wider or least narrow): Senior Financials and Health Care both -1.2), subordinated Financials (-1.4%).

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