M&G's Tomlins: The energy trade has passed, you have missed it

Retailers next at risk

James Tomlins, manager of the M&G European and Global High Yield funds, has argued investors have missed the energy rally.

In the latest Bond Vigilantes TV update, Tomlins, who has worked at M&G since 2011, said the energy rally had alreday passed given the strong rise in commodity prices. With oil prices dropping below $30 a barrel at the start of last year, the spread of owning US energy names over US high yield widened to 1097 bps in Q1 2016. However, since then the oil price has nearly doubled, with Brent currently trading at $56, and spreads have consequently contracted to 32 bps.  Tomlins said: "It is fair to say the energy trade has now passed, you have missed it. If you were not long energy bon...