High-Yield Carnage Stays Contained for Now
- Junk energy bond spreads soar to over 575 basis points
- All sectors in U.S. high yield debt widened on Wednesday
Oil Falls Further Into a Bear Market
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Oil’s latest foray into a bear market has left the world’s biggest junk bond ETF relatively unscathed, with the damage mostly contained to the energy sector.
Investors still aren’t demanding much higher overall premiums for the riskiest corporate debt and the $18.4 billion iShares iBoxx High Yield Corporate Bond ETF has gained 3.4 percent this year, even as credit spreads for energy companies widened to the highest since November after crude slid below $43 a barrel this week.