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Late Corporate Credit Update: Risk Climbs As Stock Rout Deepens

US

Investment-grade corporate credit risk gradually heating up as stocks continued to extend lows in late: SPX eminis trade -96.25 (-2.27%) at 4135; DJIA -680.19 (-2.02%) at 33027.16; Nasdaq -335.8 (-2.6%) at 12369.

  • Investment grade risk measured by Markit's CDXIG5 index +3.017 to 84.026; CDXHY5 high yield index at 100.369 (-0.746).
  • Outperforming credit sectors (tighter or least wide): Financials (Senior +0.5 and subordinated +0.6) followed by Utilities (+0.7) and Energy (+0.8).
  • Lagging sectors (wider or least narrow): Communications and Consumer Staples both (+1.8) followed by Health Care (+1.6) and Technology (+1.4).

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