01.12.2014 - Does the Oil Price Collapse Put the High Yield Market at Risk?
The high yield market may have a taken a big hit on Thanksgiving day. The cause – a collapse in the price of oil on OPEC’s decision to leave oil production unchanged, something that Francisco Blanch of BofA Merrill Lynch Global Research told CNBC viewers is anything but temporary and as such something that will not be kind to the companies that operate in the oil sector. Blanch begins… … if you are going to let the market balance itself as OPEC has stated, it’s going to be a pretty painful process. We know that production costs for many shale producers are meaningfully below the current spot prices...............................................Full Article: Source
Print