Free Trial

Corporate Credit Update: Heating Up as Stocks Head South

US

Investment-grade corporate credit risk climbed back to late July levels as stocks reacted negatively to hawkish policy tones from Fed and ECB: SPX eminis trade -92.75 (-2.21%) at 4107.5; DJIA -615.96 (-1.85%) at 32671.57; Nasdaq -342.8 (-2.7%) at 12295.19.

  • Investment grade risk measured by Markit's CDXIG5 index +3.460 to 884.333 (85.170 session high last seen July 27); CDXHY5 high yield index at 100.372 (-0.803).
  • Outperforming credit sectors (tighter or least wide): Financials (subordinated -0.2, Senior +0.0), Communication and Energy both +0.3.
  • Lagging sectors (wider or least narrow): Technology +1.0, Health Care +0.9 and Consumer Discretionary +0.7.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.