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Late Corporate Credit Update: IG5 Risk Reverses, Extend Late Highs

US

Investment-grade corporate credit risk rebounded in late trade as support for equities evaporated, move coincided with headlines that Apple plans to slow hiring expenditures for some teams next year. Currently, SPX eminis trading -13.25 (-0.34%) at 3851.75; DJIA -85.08 (-0.27%) at 31203.11; Nasdaq -37.6 (-0.3%) at 11415.08.

  • Investment grade risk measured by Markit's CDXIG5 index -0.039 to 90.507 vs. 88.511 in early trade; CDXHY5 high yield index at 98.899 (+0.080).
  • Outperforming credit sectors (tighter or least wide): Consumer Staples, Consumer Discretionary, Industrials and Technology all clustered around -1.0
  • Lagging sectors (wider or least narrow): Energy, Senior and subordinated Financials all clustered around +0.1

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