NEW YORK: Energy companies with junk credit ratings are thriving amid soaring oil prices, but good news for one of the high-yield space’s biggest segments looks like terrible news for the rest of the asset class.
Up until now, money mangers have viewed US high-yield debt as somewhat insulated from Russia’s invasion of Ukraine and the toll it’s taken on global markets. But should inflation, say from rising oil prices, get out of hand, that could spell trouble for some of the riskiest credits.
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