Cirrus Research, LLC is an independent research firm dedicated to delivering innovative analysis and insights to mid, small and micro cap investors. Our approach is idea driven and disciplined, our services strategic and quantitative, and our products solely focused on the discovery of arbitrage and opportunistic situations for our clients.

In this endeavor we employ historically deep and accurate data across multiple markets. Our products utilize proprietary modeling and valuation tools specifically constructed to analyze and forecast volatility and risk in under-researched areas of the markets. Helping our clients achieve superior risk-adjusted returns through original and anticipatory analyses is our goal.

Cirrus Capsule: Investment Grade – the Next Phase of Credit Contagion

Investors have been slow to acknowledge the likelihood of contagion to the rest of corporate America. This contagion is likely to be transmitted via a backup on non-financial Investment Grade (IG) paper.  Importantly, IG Industrial spreads are almost always above the levels for IG Financials. These spreads are reversed currently, as shown below in the stylized curve of the present vs. 1990 when both Industrials and Financial IG paper were penalized in the S&L crisis. A bearish narrowing needs to occur.