Credit Risk Gauge Edges Lower as Fed Resumes Easing Cycle

A key measure of credit risk in the US corporate bond market edged lower on Wednesday in the minutes after the Federal Open Market Committee cut a benchmark interest rate for the first time this year, citing labor market weakness.

The spread on the five-year Markit CDX North American Investment Grade Index, which falls as perceived credit risk drops, declined about 0.2 basis point to around 47.7 basis points in the moments after the Fed released its statement, still leaving it slightly higher for the day.