SN - Fixed Income: Energy Junk Bonds Are Left With No Energy
Almost every person is high-yield junk
When things started coming from Japan in the 1960s and 1970s, everyone said they were junk. And then all of a sudden we felt by the 1980s the quality of their products and cars was better. Everything coming out of China was junk. - Michael Milken
Junk-rated bonds (HYG, JNK, AWF, BKLN) of energy (XLE) companies are under-performing again.
What's behind the broad-based decline among junk-rated energy bonds recently? Investors are looking at the fundamentals & they don't like what they see.