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Corporate Credit Update

US

Investment-grade corporate credit risk levels actually hold lower levels in late trade despite the midmorning reversal in stocks and stronger than expected JOLTs jobs gains. Strong labor market metrics weighed on Tsy futures as speculation over a less hawkish December FOMC faded.

  • Investment grade risk measured by Markit's CDXIG5 index is currently -1.502 at 88.767; CDXHY5 high yield index at 99.630 (+0.427).
  • Outperforming credit sectors (tighter or least wide): Materials (-4.7) Sr and subordinated Financials along with Communications and Energy all clustered around -4.4.
  • Lagging sectors (wider or least narrow): Consumer Discretionary and Industrials both -3.4, Technology -3.6.

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