WTI Crude has legged down for the 3rd time today, crashing to a $47 handle...

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the lowest since Sept 2017...

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And as energy tumbles, high yield credit markets and the Canadian dollar are suffering the collateral damage...

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As we noted previously, having learned little from the 2015 near death experience for many shale companies, despite the rebound in oil prices and commitment to restrain spending, oil companies’ debt levels remain little changed since 2013, according to Moody’s.

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Since energy-related bonds make up about 15% of the high-yield index, and with a substantial number of corporate bonds on the verge of falling below BBB ratings in the months ahead, the potential impact of falling energy prices (a reduction in revenue) and higher borrowing costs is a potential double-whammy to an important sector of the economy.