SYSTEMATIC CREDIT AND EQUITY TRADING is a rule-based approach to investing in fixed income markets — specifically corporate bonds — that uses a series of algorithms rather than human judgment to make investment decisions. G-255 monitors market and macro trends to identify better risk-return opportunities in corporate bonds and equities.
G-255 INDICATORS — In the context of systematic credit and equity, the G-255 refers to a specific group of high volume, liquid U.S. corporate bond issuers often used as a benchmark for market activity. The G-255 monitors the universe of securities daily to assess the group calling for more equity, credit or bond funds to be deployed for investor activity.
Systematic Trading Model Statistics for April 8 in $B
| G-255 Credit | Value | G-255 Equity | Value |
|---|---|---|---|
| Issuers & Securities | |||
| Total Issuers | 255 | Total Issuers | 255 |
| G-255 Credit Bonds in Issue | 6,208 | G-255 Equities in Issue | 245 |
| G-255 Credit Trading MKT Cap $B | $7,125 | G-255 Equity Trading MKT Cap $B | $53,731 |
| De-levering / Growing Cash Flow | |||
| De-levering Credit Issuers | 113 | Equity Issuers Growing Cash Flow | 202 |
| De-levering Market Capital $B | $3,337.8 | Growing Cash Flow Market Cap $B | $49,592.5 |
| Re-levering / Cash Flow Decline | |||
| Re-levering Issuers | 142 | Issuers with Cash Flow Decline | 43 |
| Re-levering Market Capital $B | $3,787 | Cash Flow Decline Market Cap $B | $4,138.7 |
| Long Indicators | |||
| Long Credit Indicators | 208 | Long Equity Indicators | 45 |
| Long Credit Market Cap $B | $246.9 | Long Equity Market Cap $B | $10,274.4 |
| Undervalued Credit Indicators | 194 | Undervalued Equity Indicators | 27 |
| Undervalued Credit Market Cap $B | $317.7 | Undervalued Equity Market Cap $B | $14,292.1 |
| Short Indicators | |||
| Short Credit Indicators | 319 | Short Equity Indicators | 22 |
| Short Credit Market Cap $B | $463.3 | Short Equity Market Cap $B | $2,237.3 |
| Overvalued Credit Indicators | 1,071 | Overvalued Short Equity Indicators | 2 |
| Overvalued Credit Market Cap $B | $902.3 | Overvalued Equity Market Cap $B | $190.2 |
How to Use This Chart
- 202 G-255 largest cap equities show YoY cash flow growth — 73 trade >5% below historic trend.
- 113 G-255 largest credit issuers are de-levering — 194 bonds trade within 20% of 52-week wide spread.
- 43 global large-cap equities have YoY cash flow decline — 24 trade >5% above historic trend.
- 142 global large corporate debt issuers are re-levering — 321 bonds are within 15% of 52-week tight spread.
Key Systematic Trading Indicators for April 8
Long G-255 Equity Trade Indicators: 73 (including undervalued), –2 from Tuesday and +31% above the 200-day MA.
Short G-255 Equity Trade Indicators: 22 (+1 from Tuesday), +100% above the 200-day moving average.
G-255 Long Credit Indicators: 171 (–35 from Tuesday), +52% above the 200-day moving average.
G-255 Short Credit Indicators: 319 (–80 from Tuesday), –49% above the 200-day moving average.
Mizuho Selling USD Bank Notes, MUFG Selling Sr. Bank Holdco. First new G-255 USD supply in a week.
Unilever (UNA NA) added to the highest rated G-255 long equity list.
Delta (DAL US Equity) Reports 1Q results this AM.
Credit Market Conditions
US HY 10Y Credit
| Date | Spread | Change |
|---|---|---|
| Today | +296 bp | — |
| 1 year ago | +449 bp | –153 bp |
| 1 month ago | +296 bp | 0 bp |
| 1/23/2026 | +256 bp | +40 bp |
| 3 months ago | +259 bp | +37 bp |
| 12/31/2025 | +266 bp | +30 bp |
| 2/22/2025 | +261 bp | +35 bp |
| 4/10/2025 | +409 bp | –113 bp |
| 11/12/2024 | +253 bp | +43 bp |
US Corporate BAA 10Y Credit
| Date | Spread | Change |
|---|---|---|
| Today | +179.0 bp | — |
| 1 year ago | +180.5 bp | –1.4 bp |
| 1 month ago | +175.2 bp | +3.9 bp |
| 1/23/2026 | +162.5 bp | +16.6 bp |
| 3 months ago | +175.9 bp | +3.2 bp |
| 12/31/2025 | +172.3 bp | +6.7 bp |
| 2/22/2025 | +150.0 bp | +29.0 bp |
| 4/10/2025 | +203.5 bp | –24.5 bp |
| 11/12/2024 | +124.8 bp | +54.2 bp |
US Corporate A 10Y Credit
| Date | Spread | Change |
|---|---|---|
| Today | +153.0 bp | — |
| 1 year ago | +147.5 bp | +5.6 bp |
| 1 month ago | +150.2 bp | +2.9 bp |
| 1/23/2026 | +138.5 bp | +14.6 bp |
| 3 months ago | +150.2 bp | +2.9 bp |
| 12/31/2025 | +146.3 bp | +6.7 bp |
| 2/22/2025 | +127.9 bp | +25.2 bp |
| 4/10/2025 | +167.5 bp | –14.5 bp |
| 11/12/2024 | +96.9 bp | +56.2 bp |
*Source: Bloomberg Capital Markets | Jan 23, 2026 was the peak in G-255 credit short trade indicators (1,384)
G-255 Report Index
- Page 1Top G-255 Systematic equity and credit sector trading indicators, statistics and changes
- Page 2G-255 Equity trading highest ranked long/short indicators and results
- Page 3G-255 Systematic Credit Sample Basket Trade and results
- Page 4G-255 Thursday equity, Monday investment grade credit and high yield credit trading results
- Page 5G-255 Overall Credit and Equity trade indicators and correlation
- Page 6G-255 New Supply Week of April 2 and March New Issue Trade Performance
- Page 7G-255 Credit Trading Strategy Changes
Issuer Equity Price Movement and Credit Spread Levels are Directly Correlated
G-255 Credit Trading Allocation Indicators — April 8
50%
Long: De-leveraging sector trade indicator bonds
22.5%
Front-End (3 years and shorter in maturity): 75% in floating-rate notes (<3 years)
27.5%
Short: Model trade indicator in sectors adding net debt
G-255 Equity Trading Allocation Indicators — April 8
10%
Front-End (3 years and shorter in maturity): Corporate Credit See Above
70%
Long: Issuers with positive cashflow trading below attractive indicator
20%
Short: Issuers with declining cashflow trading above short trade indicator
Top Short G-255 Credit Sector Indicators
| Sector | Count | $B | vs Tue |
|---|---|---|---|
| Healthcare all curr | 72 | $92.8 | +25 |
| Autos all curr | 9 | $8.1 | –2 |
| Energy all curr | 55 | $73.2 | –16 |
Top Short G-255 Equity Sector Indicators
| Sector | Count | $B | vs Tue |
|---|---|---|---|
| Autos all curr | 1 | $39.6 | 0 |
| Energy USD | 5 | $259.2 | 0 |
| Industrials USD | 4 | $659.0 | 0 |
Top Long G-255 Credit Sector Indicators
| Sector | Count | $B | vs Tue |
|---|---|---|---|
| Single A TMT all curr | 22 | $111.6 | +2 |
| BBB/BB TMT (USD) | 29 | $416.0 | +9 |
| Euro Banks | 35 | $247.6 | +1 |
Top Long G-255 Equity Sector Indicators
| Sector | Count | $B | vs Tue |
|---|---|---|---|
| US TMT (USD) | 14 | $17,562 | –2 |
| Big 6 Banks | 1 | $252,251 | –1 |
| Euro Banks | 8 | $674,611 | –1 |
Top Long Credit Issuer
Bank of New York
Long
Top Short Credit Issuer
Energy Transfer
Short
Top Long Equity Issuer
Microsoft
Long
Top Short Equity Issuer
Equinor (Norway)
Short
G-255 Publications
Daily · 2am–7am ESTEvery Trading Day
Daily Trade Indicator Report
G-255 equity and credit trade indicators for all 255 global issuers. Long, short, and avoid levels updated overnight.
Daily · Before 10am ESTEvery Trading Day
Morning New USD Indicator Report
Published before G-255 issuers sell USD bonds. New issue credit trade indicators flagging attractive and avoid levels.
WeeklyOnce Per Week
Weekly New USD Supply Report
Comprehensive weekly summary of G-255 new USD supply with fair value analysis, sector concentration, and performance data.
IntradayAs Earnings Release
Issuer Results Report
The most-read G-255 publication. Credit and equity trade indicators updated in real time on earnings releases.
FAQs
What are the full definitions of G-255 Systematic Daily Credit Trading Model Indicators?
The G-255 Systematic Daily Credit Trading Model generates long, short, and avoid indicators for all 255 tracked corporate issuers. Long indicators identify de-leveraging issuers whose bonds trade within 20% of their year-over-year wide credit spread. Short indicators flag re-leveraging issuers whose bonds trade within 10% of their 52-week tight credit spreads. All indicators are generated systematically overnight with no discretionary input, updating automatically as new bond data becomes available. When bonds are held until they reach their avoid-trading level, the model has been historically accurate 97.5% of the time.
How does the G-255 information tend to show they are?
G-255 indicators are generated daily using a quantitative systematic model that analyzes balance sheet leverage, cash flow, credit spread levels, and equity price movements relative to historic norms. The model achieves 97.5% back-tested accuracy by benchmarking each of the 255 issuers against their own historical patterns rather than broad market indices. Credit indicators cover approximately 85% of TRACE-reported USD corporate trades. Equity indicators cover approximately 84% of global large-cap daily trading volume.
What are the G-255 Possible Indicators and how can they be handled?
The G-255 Possible Indicators represent the full universe of potential long and short signals across all 255 issuers and their associated bond and equity securities. The model calculates possible indicators by continuously monitoring spread levels, moving averages, and cash flow metrics. When an issuer's metrics cross a systematic threshold, a new indicator is generated or an existing one is retired automatically. The G-255 generates long indicators for approximately 12% of new credit issues, which represent approximately 67% of total annual USD new debt capital.
Companies We Focus On
AT&T
Verizon
Volkswagen
Toyota
Apple
Microsoft
JPMorgan
Amazon
Meta
HSBC