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Late Corporate Credit Update: Cooling Off As Stocks Extend Gains

US

Investment-grade corporate credit risk gradually receded back to early session lows late Tuesday as stocks managed to extend highs: SPX eminis currently +27.75 (0.65%) at 4325.75; DJIA +363.23 (1.07%) at 34275.06; Nasdaq rebounding: +46.1 (0.4%) at 13173.91.

  • Investment grade risk measured by Markit's CDXIG5 index -0.147 to 74.175; CDXHY5 high yield index at 102.949 (-0.068).
  • Outperforming credit sectors (tighter or least wide): Senior and subordinated Financials both -0.5, followed by Utilities (-0.4), Consumer Discretionary and Materials both +0.1.
  • Lagging sectors (wider or least narrow): Communications (+0.8), Energy (+0.7), Consumer Staples, Health Care and Industrials all +0.5

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