WTI Crude Breaks Below Historic $40 Level, Energy Credit Spikes To Record Highs After Rig Count Rise

Friday, August 21, 2015
By Paul Martin

by Tyler Durden

Well, we have a winner – Oil broke to a 3 handle before 10Y rates hit a 1 handle (just – 10Y at 2.04%) following the 5th weekly rise in rig count (+2 to 674). Energy credit risk is soaring to record highs as investors realize ‘there will be blood’ in all those highly-levered loans. This is the first time the front-month crude contract traded below $40 since March 3rd 2009… just before QE was unleashed in all its asset-inflating, malinvestment-driving, zombifying glory.

The Rest…HERE

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