“We Wish We Bought Every Bond In The Index”: High Yield Knocks It Out Of The Park

“We Wish We Bought Every Bond In The Index”: High Yield Knocks It Out Of The Park

I've been skeptical about the prospects for HY bonds (and especially HY energy) for some time now. My skepticism has not dissipated. In fact, the incredible returns one could have earned by being in HY in 2016 make me even more incredulous. Remember, when it comes to HY energy, we're very often talking about cash flow negative US E&P names that rely on access to capital markets to plug their funding gaps. The following table is a bit dated, but it illustrates the point: (Table: Citi) S
Subscribe or log in to read the rest of this content.

One thought on ““We Wish We Bought Every Bond In The Index”: High Yield Knocks It Out Of The Park

  1. There were a lot of HY energy ( mainly non E&P), that were severely undervalued in Feb 2016. As you state upstream is not out of the woods by any means. Made just over 46% this year on non upstream energy companies.

Speak your mind

This site uses Akismet to reduce spam. Learn how your comment data is processed.