The Drop in Oil was Perhaps the ‘Final Straw’ for U.S. Credit Markets, Strategist Says -
"The credit market is sensitive to moves in oil because a 'very large portion' of high-yield bonds in America are issued by companies involved in energy production, distribution and exploration, Thomas Tzitzouris of Strategas Research Partners said."
Why this is important: U.S. credit market's volatility and vulnerability have been greatly affected by falling oil prices and historic lows on Treasury yields. With some U.S. shale producers on the brink of bankruptcy, the recent drop in oil prices are further straining a leveraged credit market, signaling worse times to come....
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