I have checked that for clearance and have not seen any signs of it making contact with the sway bar. Its almost like maybe something inside of the new cat is making the noise and transferring elsewhere or in the muffler? I really didnt want to have to cut that new cat off and put a test pipe in cause its such a pain to get good welds on it when your lying on your back. I am really starting to believe that it is something exhaust related.