A Growing Black Cloud Over The Market

A storm is brewing over the high yield bonds in particular and capital markets in general. After what has been a remarkably strong and largely uninterrupted advance since the financial crisis went dormant in early 2009, the high yield corporate bond asset class is showing signs of growing stress. The primary culprit has been the precipitous decline in oil prices. But exactly how great is the direct exposure? What are the specific companies that are worth monitoring to gauge the pace of fundamental deterioration both in the sector as well as across the asset class? And what are the implications, if any, for the stock market?

Please click on the link to read more of my article on Seeking Alpha.

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