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Corporate Credit Update: New Highs

US

Investment-grade corporate credit risk inched higher Friday - back to April 2020 levels as Tsys yields surged to new 15Y highs (2YY 4.2657%) after Tsys and EGBs tracked Gilts amid heavy selling in short end to intermediates after fiscal event concluded by Chancellor Kwasi Kwarteng in the House of Commons earlier.

  • Investment grade risk measured by Markit's CDXIG5 index is currently +3.635 at 106.057; CDXHY5 high yield index at 97.552 (-0.546).
  • Outperforming credit sectors (tighter or least wide): Industrials and Health Care both +4.7, followed by Consumer Staple, Consumer Discretionary and Utilities clustered at +4.8.
  • Lagging sectors (wider or least narrow): Materials +6.3, Energy +6.2, Communications +6.1.

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