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Late Corporate Credit Update: Heating Up Again

US

Investment-grade corporate credit risk holding mildly high in late FI trade, upper half of narrow range as stocks recede amid thin participation: SPX eminis trading -9.25 (-0.24%) at 3816.75; DJIA +65.12 (0.21%) at 31010.79; Nasdaq -39 (-0.3%) at 11142.58.

  • Investment grade risk measured by Markit's CDXIG5 index at 100.174 (+0.854); CDXHY5 high yield index at 97.132 (-0.418).
  • Outperforming credit sectors (tighter or least wide): Health Care and Industrials sectors both (+0.9) followed by Technology and Utilities (+1.1).
  • Lagging sectors (wider or least narrow): Materials (+3.1), Consumer Discretionary and subordinated Financials both +2.2.

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