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Late Corporate Credit Update: New 4 Month Low

US

Investment-grade corporate credit risk extends session lows late Monday as stocks manage to extend gains: SPX eminis currently +15.5 (0.36%) at 4296.25; DJIA +164.88 (0.49%) at 33926.5; Nasdaq +57.5 (0.4%) at 13104.62.

  • Investment grade risk measured by Markit's CDXIG5 index -0.113 to 73.426 new four month low after breaching last Thursday's 73.492 low; CDXHY5 high yield index at 103.175 (+0.049).
  • Outperforming credit sectors (tighter or least wide): Senior (+0.9) and subordinated (+0.7) Financials, Communication (+0.8) and Energy (+1.1) lead.
  • Lagging sectors (wider or least narrow): Materials (+1.9), while Health Care, Industrials and Consumer Discretionary evenly paired at +1.7.

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