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Late Corporate Credit Update: IG5 Back Near Steady/Off Lows

US

Investment-grade corporate credit risk climbs back near early session highs as stocks trade weaker into the FI close.

  • Near steady, investment grade risk measured by Markit's CDXIG5 index currently +0.093 to 72.917 vs. 70.091 low; CDXHY5 high yield index mildly higher at 103.831 (+.027).
  • Outperforming credit sectors (tighter or least wide): Energy and Communications sectors (+1.9-2.0), former as oil and gas names rebound w/rise in crude. Latter sees ATT, Comcast, Time Warner, NBC, Verizon debt risk narrowing.
  • Lagging sectors (wider or least narrow): Materials sector debt risk extends: +3.8 from +1.98 at midday, precious metals mining debt underperforms. Financials, SR and subordinated (+3.3).

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