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Corporate Credit Update

US

Investment-grade corporate credit risk cooled in early second half trade, directional with a modest rebound in rates and equities after in-line ECB hike and dovish forward guidance.

  • Investment grade risk measured by Markit's CDXIG5 index is currently -2.010 at 90.353 vs. 93.659 high; CDXHY5 high yield index at 99.253 (+.510).
  • Outperforming credit sectors (tighter or least wide): Consumer Staples (-0.4), Energy (+0.3) and Consumer Discretionary (+0.4)
  • Lagging sectors (wider or least narrow): Subordinated Financials (+2.1), Sr Financials (+1.7) followed by Utilities (+0.7).

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