Apparently, Energy Is One Place Where Equities Are Smarter Than Credit

Apparently, Energy Is One Place Where Equities Are Smarter Than Credit

Early last month, we showed you a chart that "made no sense." See how the light blue line (WTI inverted) has decoupled materially from the dark blue line on all kinds of occasions since last year's deflationary doldrums? Yeah, well basically what those disconnects mean is that HY E&P names weren't underperforming HY as a whole when crude prices fell sharply (again, the right scale is inverted). Clearly, that makes no sense. E&P spreads should blow out far more than HY as a whole
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One thought on “Apparently, Energy Is One Place Where Equities Are Smarter Than Credit

  1. Since when do equities price risks more correctly than the bond market?? unless that’s the perspective YOU believe to be true based on your perma-bear perspective.

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