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Late Corporate Credit Update: Debt Risk 6 Week Lows

US

Investment-grade corporate credit risk has receded to the lowest levels since June 9 Tuesday, move coincides with stocks extending gains for the third consecutive session, at/near highs: SPX eminis currently trading +101 (2.63%) at 3934.25; DJIA +697.16 (2.24%) at 31767.87; Nasdaq +338.8 (3%) at 11697.25.

  • Investment grade risk measured by Markit's CDXIG5 index -5.027 to 86.260; CDXHY5 high yield index at 99.812 (+1.127).
  • Outperforming credit sectors (tighter or least wide): Energy (-2.8), while Consumer Discretionary, Industrials and Technology all clustered around -2.3
  • Lagging sectors (wider or least narrow): Senior Financials and Health Care both -1.6, Utilities, Materials and Consumer Staples all -1.9.

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