High drama in high yield: How Covid-19 and oil crisis double-whammy hit markets

Being selective key to weather the storm

Vivek Bommi of Neuberger Berman

Vivek Bommi of Neuberger Berman

Coronavirus and the OPEC price war combine for a one-two punch to high yield markets.

The impact of the coronavirus had already sent the high yield credit spread north of 550 basis points before the recent 'OPEC+' meeting. Traders and investors hoped for a cut in production from the oil-producing nations in the face of falling demand. Instead they got an all-out price war between Saudi Arabia and Russia. US unemployment jumps by a record 3 million This sent oil prices plummeting toward $30 per barrel (bbl), setting the scene for a historic week across financial markets. Equities suffered their worst down day since Black Monday in 1987; we saw an extraordinary liq...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on Bonds

The ETFs aim to overcome traditional yield shortfall by using multi-factor investing.

Invesco launches two ESG credit ETFs

Invesco has launched two new ESG ETFs that provide investors with access to investment grade fixed-rate euro-denominated unsecured corporate bonds from global issuers.

clock 29 June 2022 • 2 min read
Industry Voice: Green bonds - a powerful way to take climate action

Industry Voice: Green bonds - a powerful way to take climate action

Did you know that investing in green bonds is one of the most powerful ways to make a climate-positive impact ? Learn why green bond proceeds are putting the planet first.

Amundi ETF
clock 23 June 2022 • 8 min read
Fixed income is vital in fulfilling key functions, such as "diversification from equities, capital preservation and income".

Deep Dive: Pockets of hope for fixed income

'Easy to write off'

Elliot Gulliver-Needham
clock 17 June 2022 • 4 min read