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Corporate Credit Update

US

Investment-grade corporate credit risk held lower levels Tuesday, near mid-range in the second half with stocks holding decent gains.

  • Investment grade risk measured by Markit's CDXIG5 index is currently -2.154 at 96.254; CDXHY5 high yield index at 98.124 (+.518).
  • Outperforming credit sectors (tighter or least wide): Communications (-1.8), followed by Consumer Staples, Utilities, Materials and Health Care, all clustered around -1.5.
  • Lagging sectors (wider or least narrow): Sr Financials (-0.3), Subordinated Financials (-0.4) and Industrials (-1.0).

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