Watch Out for a Deeper Credit Selloff as Commodity Pain Spreads
Is There Anywhere to Hide From the Commodity Slump?
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It’s getting harder to find U.S. credit investments that are insulated from the pain of slumping commodity prices.
U.S. companies have generally been reporting lower quarterly earnings, even those outside an oil industry that’s been rocked by the almost 60 percent plunge in crude since last year’s peak. And revenues at most U.S. companies are positively correlated to metal prices, which have sagged in response to cooling growth from Asia to South America, according to Deutsche Bank AG analysts.