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Late Corporate Credit Update: Moderating

US

Investment-grade corporate credit risk has drifted off early second half highs to near middle of the session range.

  • Investment grade risk measured by Markit's CDXIG5 index at 80.304 (+.663) -- still well off mid-May 2Y highs; CDXHY5 high yield index at 101.551 (-0.042).
  • Outperforming credit sectors (tighter or least wide): Materials and Consumer Staples both -1.3, followed by Health Care and Utilities both -1.2.
  • Lagging sectors (wider or least narrow): Sr Financials steady, Technology (-0.2) while subordinated Financials hold around -0.4.

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