IntelArb

High yield has diverged high from crude oil m

NYMEX:CL1!   Light Crude Oil Futures
Mainly due to the Fed’s accommodative actions in the past month, high yield credit markets have rebounded significantly. However, crude oil remains near its lows, with OPEC’s cut not enough to overcome unexisting demand. I see downside risk in HYG over the next 30-60 days.

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