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Late Corporate Credit Update: Testing 2Y Highs

US

Investment-grade corporate credit risk looking to test Monday's 2Y highs as equities extend late session rout: ESM2 -187 points (-4.35%) at 4108.75; Dow Industrials currently trades -1299.64 points (-3.82%) at 32762.54; Nasdaq -765.5 points (-5.9%) at 12200.54.

  • Investment grade risk measured by Markit's CDXIG5 index currently +6.368 at 84.556 vs. 85.238 on Monday; CDXHY5 high yield index at 101.465 (-1.448).
  • Outperforming credit sectors (tighter or least wide): Financials subordinated (+0.6) outperforms Senior (+1.3)
  • Lagging sectors (wider or least narrow): Utilities (+3.4) followed by Energy (+3.3) and Communications (+2.7).

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