As the stock market continues higher, corporate default risk continues to decline. Below is a chart of the IBOX North American CDS (credit default swap) Index that looks at default risk for 125 investment grade entities. After finally topping out a few months ago, default risk is now down 35% from its highs. While credit default swap prices have fallen quite a bit, they're still at historically elevated levels, and the IBOX index remains just above its pre-Lehman levels.
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