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Late Corporate Credit Update

US

Investment-grade corporate credit risk held higher levels in late trade - near middle of session range as markets weighed chances of a fifth 75bp rate hike in December. Caution ahead Friday's October employment data that could present a clearer picture of year end monetary policy.

  • Investment grade risk measured by Markit's CDXIG5 index is currently +1.943 at 93.231 vs. 94.991 high; CDXHY5 high yield index at 98.411 (-0.517).
  • Outperforming credit sectors (tighter or least wide): Industrials and Technology both +1.6 followed by Consumer Discretionary and Utilities +1.7.
  • Lagging sectors (wider or least narrow): Communications (+3.2), subordinated Financials (+3.1), Sr Financials (+2.3)

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