Energy bonds top returns after BP cap

Energy bonds lead corporate debt returns this month after receiving a boost from BP temporarily sealing the leaking Macondo oil well.

Anadarko, a part-owner of the Macondo well, saw its debt rally 10.3% this month, while BP itself climbed gained 7.3%, Bloomberg reports. The strong gains have led the energy sector 1.45% up in July, more than double the 0.64% for the broader market, Bank of America Merrill Lynch index data reveals. In June, energy bonds returned 0.99%, trailing the 1.32% advance for worldwide corporate debt. BP's spread over government bonds fell to 390 basis points as of July 23, after soaring 507 basis points to 547 in the two months following the April 20 explosion on the Deepwater Horizon rig. ...