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M*: Tempted by High(er) Yields On Junk Bonds? Read This First
"Whereas the differential--or spread--dropped below 3.5 percentage points back in mid-2014, it was nearly two percentage points higher as of early February. That's because much of the issuance in the high-yield bond sector comes from energy firms, many of which took on debt to finance projects when oil prices were rising."
No, Christine, only about 10-15% of HY issuance is from energy firms, and the weak hands probably will start losing their grip during Q2. By the summer solstice, the fingernails on the cliff edge will have broken, and the damage can then be assessed, at the MF level. Until then, IMO, this Benz Bucket is good to go.
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No, Christine, only about 10-15% of HY issuance is from energy firms, and the weak hands probably will start losing their grip during Q2. By the summer solstice, the fingernails on the cliff edge will have broken, and the damage can then be assessed, at the MF level. Until then, IMO, this Benz Bucket is good to go.