Moody's ratings agency on their Liquidity-Stress Indictor (LSI)
- Declined in the first two weeks of March to 2.5% from 2.7% in February
- The indicator rose for the first time in a year in January
"The LSI has moved in a narrow range over the last six months amid modest rating activity," said John Puchalla, Senior Vice President at Moody's. "Overall, the US speculative-grade liquidity picture remains sound, with corporate earnings benefiting from a growing economy, while issuers also maintain good credit market access and covenant flexibility despite recent spread widening."
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Moody's Liquidity-Stress Indictor falls when corporate liquidity appears to improve and rises when it appears to weaken.
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With an FOMC meeting this week credit indicators take on heightened levels of interest. This for example, showing a record low for stress even after Fed rate hikes.
