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Late Corporate Credit Update: Investment Grade Risk Extends 2Y Highs

US

Investment-grade corporate credit risk extending new 2-year highs as Friday as equities fall back to late Tuesday lows (ESM2 -127.5 at 4156.0)

  • Investment grade risk measured by Markit's CDXIG5 index currently +3.013 to 83.914 vs. 84.267 high; CDXHY5 high yield index at 101.491 (-.735).
  • Outperforming credit sectors (tighter or least wide): Materials and Consumer Discretionary both +0.6 Financials, subordinated (+0.7),
  • Lagging sectors (wider or least narrow): Energy (+1.6) followed by Technology and Communications both +1.4.

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