Credit Wobble
Thursday, May 30th, 2019 Categories: Corporate Bonds, Energy Prices, United States
High Yield weakness is not caused by the Energy sector
High Yield has peaked in our fixed income models and has fallen sharply against Investment Grade. We have checked our cross-asset sector models and it isn’t caused by a problem in Energy. It looks like a straightforward loss of confidence in the outlook for Industrial High Yield. This is potentially ominous for Equities as well, but we haven’t generated a sell signal just yet.