A pullback in oil prices should be positive for corporate credit, according to Jefferies's Mohit Kumar. Credit spreads are too tight but outright yields are still attractive, the global economist writes in a note. "We remain positive on credit on a total yield basis," he says. More broadly, Jefferies remains positive on risky assets. "No need for central banks to hike rates (our view), positive seasonality in July, not so crowded positions and ample cash in the system should all favor risky assets over the coming weeks," Kumar says. (emese.bartha@wsj.com)
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Corporate Credit Could Benefit From Lower Oil Prices — Market Talk
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A pullback in oil prices should be positive for corporate credit, according to Jefferies's Mohit Kumar. Credit spreads are too tight but outright yields are still attractive, the global economist writes in a note. "We remain positive on credit on a total yield basis," he says. More broadly, Jefferi…