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Corporate Credit Update: Still Near Mid-April Lows

US

Still near mid-April lows, investment-grade corporate credit risk has bounced slightly as stocks pare gains heading into midday: SPX eminis trade SPX eminis trade +16.5 (0.39%) at 4226.5; DJIA +157.18 (0.47%) at 33465.75; Nasdaq -2.6 (0%) at 12851.68.

  • Investment grade risk measured by Markit's CDXIG5 index -0.287 to 76.036 vs. 73.492 low; CDXHY5 high yield index at 102.409 (-0.091).
  • Outperforming credit sectors (tighter or least wide): Communications (-5.1), subordinated Financials and Energy sector debt both decline -4.3, Consumer Discretionary -3.9.
  • Lagging sectors (wider or least narrow): Utilities (-2.7), Senior Financials (-2.9) and Indutrials (-3.1).

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