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Late Corporate Credit Update: Stable Near Month Lows

US

Investment-grade corporate credit risk gained slightly after a mildly volatile session Tuesday, levels still near lows for the month as equities tried to shrug off a reversal in crude prices that had been supporting energy stocks for much of the session.

SPX Jun futures bouncing off lows again, ESM2 currently -3.50 (-0.37%) at 4152.25 after after trading above the 50-day EMA of 4190.56 overnight (4202.25 high).

  • Investment grade risk measured by Markit's CDXIG5 index at 79.773 (+.781); CDXHY5 high yield index at 101.576 (-0.195).
  • Outperforming credit sectors (tighter or least wide): Communications (-4.1) followed by Materials (-3.1) and Energy (-2.7) stable even as O&G shares reverse earlier gains.
  • Lagging sectors (wider or least narrow): Financials (Sr) -1.5, Industrials (-1.9) and health Care (-2.1)

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