This was not supposed to happen. Since The Fed raised rates the temporary (one day) stability in high-yield bonds has been obliterated. Across all sectors, HY bonds are being sold; the HY bond ETF is tumbling back to recent lows; and Energy spreads have surged to record highs. In a nutshell, it's not over yet!
Everything is being sold...
As HYG breaks key support...
And Energy spreads spike to recod highs...
As Energy Fwd P/Es begin to fall back to reality...
Charts: Bloomberg