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Always Read The Small Prints

22 March 2017 by lberuti

The new series of CDX HY, the benchmark for high yield credit in the US, will be launched next Monday. Series 28 will bear a Jun 2022 maturity like all other 5-year indices launched in March 2017, and, like previous series of CDX HY, it will include 100 constituents. That might not last long though. When SHLD ( Sears Holdings Corp ) released their annual 10-K filing yesterday, they added so-called going concern language. Acknowledging “substantial doubt” about its future raised fresh concerns about the survival of the company among investors who sent the stock tumbling down and the 5-year risk premium through the roof. The company tried during the day to calm things down and said they remained focused on executing their transformation plan, which includes assets sales and an aggressive cost cutting program. It stopped the rot, but SHLD was still the worst performer of the consumers sector today.