Oil Rally Hidden in Junk Bond Market

The video discusses the junk bond market, focusing on high yield energy bonds. Lisa Brown highlights the increased premium investors demand for these bonds compared to non-energy debt, despite rising oil prices. Analysts suggest that many shale companies struggle with their capital structures unless oil prices rise above $65 per barrel. The video also examines specific cases like Altamesa, whose bonds have plummeted due to potential credit facility non-compliance, raising concerns about further bankruptcies in the shale sector.

What has been the trend in the premium for high yield energy bonds compared to non-energy debt?

What factors are affecting the survival of companies in the shale patch according to analysts?

What is the significance of oil prices staying between $60 and $65 a barrel for the shale industry?

What recent event occurred with Altamesa bonds, and what does it indicate about the market?

How are investors responding to the risks associated with energy issuers in the current market?