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Late Corporate Credit Update

US

Investment-grade corporate credit risk holding late session lows -- back near mid-September levels after lower than expected CPI (0.4% MoM vs. 0.6% est) spurred a sharp relief rally on prospect of more measured/less aggressive rate hikes for year-end into early 2023.

  • Investment grade risk measured by Markit's CDXIG5 index is currently -8.718 at 83.519 vs. 92.625 high on the open; CDXHY5 high yield index 100.395 (+1.944).
  • Outperforming credit sectors (tighter or least wide): Energy (-8.4), Communications and Technology both -7.8
  • Lagging sectors (wider or least narrow): Consumer Discretionary (-5.5), Utilites (-6.1) and Consumer Staples (-6.2).

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