Default Risk Index Breaks Downtrend

Below we highlight a price chart of the CDX North American Investment Grade Index that tracks the credit default risk of 125 investment grade entities. After declining 50% from its peak closing price on March 10th, default risk has risen over the past few days, breaking the steep downtrend that formed over the past two months. Financials have been getting hit hard this week, and AIG's poor earnings report Thursday night didn't help much. Hopefully this isn't the start of a new uptrend.

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Comments

[alphameister]

Troubling, but not likely heading to a new peak. Fits in with the market correction now underway.