Monday Morning Credit Market Round Up

November 27, 2017
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From October 23 to November 15, the CCC yields widened out nearly 100 basis points, rising from 10.19% to 11.09%.  The BBBs also increased, but not by the same magnitude.  They rose 11 basis points between October 23 and mid-November.  The Baa’s saw no increase, meaning the problems in the junk bond market were contained.
The St. Louis Financial Stress Index — which is similar to the Kansas City number but is issued weekly instead of monthly — is showing very little stress
The 90-day commercial paper treasury bill spread has widened a bit, rising o 19 basis points.  But it was higher a year ago.  This bears watching but is not concerning yet.  
In contrast, the short-term asset-backed market has maintained its current short-term spread (top chart) or has come in a bit (bottom chart).

Finally, the 10-year FF spread has widened about 30 basis points since the beginning of September while the 30 year FF rate has been stable.  

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