Latest Stories

Time to Arbitrage Oil?

By Hong Mu | June 14, 2018

Since February of this year, U.S. oil production has topped and has remained over 10 million barrels per day (mmb/d), a level of output we haven’t seen since 1970. This… Read More

Oil Prices and Treasury Yields Fall

By David O'Malley | May 29, 2018

Last week saw a reversal in two market trends that have been occurring for the past several months: increasing oil prices and treasury yields. Oil prices dropped almost 10%, from… Read More

Will Earnings Keep the Stock Market Momentum Going?

By David O'Malley | January 16, 2018

Last week’s inflation data came in slightly above expectations while most equity markets continued to rally. Stocks pushed to new all-time highs on optimism for economic growth, deregulation and a… Read More

Drilling A Bit Deeper into High Yield Energy

By Scott Ellis | November 2, 2017

With the energy markets seemingly rebalanced and oil prices hovering near $55 per barrel, we have decided to take a closer look at the Oil Field Services sector. This subsector is the weakest link in the energy supply chain as these companies largely rely on exploration and drilling capital expenditures. It was the most distressed energy subsector in 2016 and has been the last to recover. Still, enough has transpired to suggest a potential inflection point in fundamentals in 2018 or 2019, with many of the survivors effectively extending their own runways via opportunistic refinancings. Despite the spread compression in 2017, as seen in this week’s chart, this subsector of High Yield Energy still has higher credit spreads than the overall High Yield Energy sector and therefore is worth drilling into further (pun intended).

Oil Beta Percolates Under the Market’s Surface

By Greg Zappin | April 27, 2017

Oil prices were the big story in the credit markets from the fall of 2014 through the fall of 2016 as the 40% decline in benchmark WTI helped drive a… Read More

Signals to Watch Through the Current Fed Rate Hike Cycle

By John Swarr | March 15, 2017

The Federal Open Market Committee (FOMC) is set to release its policy rate decision today at 2:00PM EST. The broad market consensus is the Federal Reserve (Fed) will raise the federal funds rate by 25 basis points (bps) this afternoon. However, market participants will also be anticipating the release of the “dot plot,” which FOMC members use to signal their outlook for the number and timing of future policy rate increases. The dot plot was last released at the December 2016 meeting, and the median dots showed three 25 bps rate hikes for 2017. Although the dots can help investors understand what FOMC members are thinking, the dot plot can differ from the market’s forecast of future short rates in the Eurodollar futures market.

Despite Its Volatility, Stay the Course with Energy

By Trevor M. Williams | January 5, 2017

Like most products and services, the price of oil is a function of supply and demand. During periods of extended oversupply, the price of oil tends to fall.

Will the Natural Gas Price Recovery be Sustained?

By Greg Zappin | October 27, 2016

Oil, copper, steel, gold and other industrial and precious metals tend to garner most of the attention in the credit markets when talking about the commodity complex. Rightly so, as they serve as proxies for global gross domestic product (GDP) growth, flight to quality/risk sentiment and Chinese demand.

Jackson Hole Speech Headlines a Quiet Week Ahead

By David O'Malley | August 22, 2016

I expect the week ahead to be calm, with all eyes on Janet Yellen’s speech on Friday, August 26, at the Federal Reserve (Fed)’s Jackson Hole Wyoming symposium hosted by the Kansas City Fed.

Goldilocks Visits the Oil Patch

By Greg Zappin | June 2, 2016

Not too hot, not too cold. That’s been the state of the domestic economy for the better part of seven years. Every time we think the party is about to end, the central banks have managed to maintain order and reestablish equilibrium.

Disclosure Statement

The material provided here is for informational use only. The views expressed are those of the author, and do not necessarily reflect the views of Penn Mutual Asset Management.


This material is for informational use only. The views expressed are those of the author, and do not necessarily reflect the views of Penn Mutual Asset Management.  This material is not intended to be relied upon as a forecast, research or investment advice, and it is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy.

Opinions and statements of financial market trends that are based on current market conditions constitute judgment of the author and are subject to change without notice.  The information and opinions contained in this material are derived from sources deemed to be reliable but should not be assumed to be accurate or complete.  Statements that reflect projections or expectations of future financial or economic performance of the markets may be considered forward-looking statements.  Actual results may differ significantly.  Any forecasts contained in this material are based on various estimates and assumptions, and there can be no assurance that such estimates or assumptions will prove accurate.

Investing involves risk, including possible loss of principal.  Past performance is no guarantee of future results.  All information referenced in preparation of this material has been obtained from sources believed to be reliable, but accuracy and completeness are not guaranteed. There is no representation or warranty as to the accuracy of the information and Penn Mutual Asset Management shall have no liability for decisions based upon such information.

High-Yield bonds are subject to greater fluctuations in value and risk of loss of income and principal. Investing in higher yielding, lower rated corporate bonds have a greater risk of price fluctuations and loss of principal and income than U.S. Treasury bonds and bills. Government securities offer a higher degree of safety and are guaranteed as to the timely payment of principal and interest if held to maturity.

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