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Corporate Credit Update: Risk Heats Up

US

Investment-grade corporate credit risk has risen back near August 9 levels Friday as stocks erase gains for the week: SPX eminis trade -52.25 (-1.22%) at 4234; DJIA -249.91 (-0.74%) at 33748.83; Nasdaq -255.6 (-2%) at 12709.29.

  • Investment grade risk measured by Markit's CDXIG5 index +2.882 to 80.162; CDXHY5 high yield index at 101.324 (-0.721).
  • Outperforming credit sectors (tighter or least wide): Materials (+1.2), Consumer Discretionary and Utilities (+1.4) followed by Health Care (+1.9).
  • Lagging sectors (wider or least narrow): Communications (+2.8) followed by Energy and Technology, both +2.6.

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