Financial Times – 12/2/14

Michael Kastner, managing principal at Halyard Asset Management, said a further fall in the oil price raises the prospect of more underperformance of junk-rated debt, to the detriment of the broader market.

“In fixed income, once you can no longer quantify risk versus return, you head for the exit,” said Mr Kastner. With junk rated debt paying a coupon of 4-6 per cent, he said there was not enough protection against rising losses.

Refinery and pipeline junk debt outshines