We Have Just Escaped The Earth's Gravity And Are Now In Space Orbit

Houston, we have a serious problem... With only 20% of US Shale regions remaining economic at these oil price levels, it should not be surprising that the credit risk of the US Energy sector is exploding to near 1000bps... and contagiously infecting the broad HY market...

Credit risk in the energy sector is starting to infect the broad HY market - HYG at 2-year yield highs and HYCDX near 15-month wides...

 

Which signals considerable pain to come for US Energy stocks..

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The denial is so loud it's deafening

 

Charts: Bloomberg