Dec 3. Junk Bond etf vs front month Crude Oil future
Red line is front month Crude Oil contract. White bar chart is JNK…junk bond ETF. Looks as if lower oil prices are associated with deterioration in bonds… as Goldman noted the other day, “The Energy sector accounts for roughly one-third of S&P 500 capex and nearly 25% of combined capex and R&D spending,”. I don’t know what the percentage is, but I would imagine a decent amount of hi yield issuance has been related to energy names.
Red line is Crude Oil, White bar chart is JNK, junk bond etf
