The document discusses the performance and outlook of high-yield (HY) corporate credit, focusing on different quality tiers within the energy sector. It highlights the tightening of spreads for higher quality names compared to mid and lower quality names, and the underperformance of lower quality names. The document suggests a positive risk-return payoff for lower quality names due to improved market conditions and capex efficiency. It also provides a historical analysis of spread levels in relation to WTI price movements.
doj/DataSet10/EFTA01385321.pdf
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