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.

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