• 287 days Will The ECB Continue To Hike Rates?
  • 287 days Forbes: Aramco Remains Largest Company In The Middle East
  • 289 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 689 days Could Crypto Overtake Traditional Investment?
  • 694 days Americans Still Quitting Jobs At Record Pace
  • 696 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 699 days Is The Dollar Too Strong?
  • 699 days Big Tech Disappoints Investors on Earnings Calls
  • 700 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 702 days China Is Quietly Trying To Distance Itself From Russia
  • 702 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 706 days Crypto Investors Won Big In 2021
  • 706 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 707 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 709 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 710 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 713 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 714 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 714 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 716 days Are NFTs About To Take Over Gaming?
Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

Tesla Struggles To Compete In European Market

Tesla Struggles To Compete In European Market

Tesla continues to catch the…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

Michael Pollaro

Michael Pollaro

Michael Pollaro is a retired Investment Banking professional, most recently Chief Operating Officer for the Bank's Cash Equity Trading Division. He is a passionate free…

Contact Author

  1. Home
  2. Markets
  3. Other

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. We know that a lot investment that has gone into shale and other parts of the industry will continue to roll into the market for maybe the next 6 to 12 months. So, I think this sets a pretty bearish scenario...

It's a scenario he thinks could take the Brent price down to $60 and the WTI price down to $50. He concludes...

... I think it's going to push out a lot of... highly leveraged players... and quite frankly going to have an impact across all asset classes because it's going to impact the outlook for inflation, it's going to impact the outlook for... equity values, credit markets...

You can find the CNBC video here.

Continue reading the rest of the article here.

 

Back to homepage

Leave a comment

Leave a comment