Free Trial

Late Corporate Credit Update: Credit Risk Cools After Flat Inflation Read

US

Investment-grade corporate credit risk fell sharply Wednesday after flat CPI inflation for July helped yield curves climb off deeper inversion as chances of 75bp rate hike in mid-Sep evaporated, while stocks surged higher, SPX breaching May 31 resistance. Currently, SPX eminis trade +79.0 (1.9%) at 4203.5; DJIA +470.82 (1.44%) at 33248.26; Nasdaq +326.1 (2.6%) at 12820.61.

  • Investment grade risk measured by Markit's CDXIG5 index -6.268 to 76.762 (mid-April lows); CDXHY5 high yield index at 102.408 (+1.429).
  • Outperforming credit sectors (tighter or least wide): subordinated Financials (-5.0), Communications (-4.9), Materials (-4.7) and Consumer Staples (-4.6)
  • Lagging sectors (wider or least narrow): Senior Financials (-1.2), Utilities (-2.8), Health Care (-3.8), Industrials (-4.0).

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.