Morning Commentary: High-grade bond spreads widen on China concerns, oil slump; funds see outflows

By Aleesia Forni

New York, Jan. 15 – Investment-grade credit spreads were mostly wider at Friday’s open as stocks sold off on declines in crude oil prices and another slump in Chinese stocks.

The Markit CDX North American Investment Grade 25 index eased 3 basis points early Friday to a spread of 106 bps.

Meantime, corporate investment-grade bond funds continued to see outflows this week.

Lipper US Fund Flows reported an outflow of $740 million from high-grade funds for the week ended Jan. 13.

This follows the previous week’s $1.12 billion of outflows, bringing the year-to-date total to $1.86 billion of outflows.

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