But falling oil prices are having a more mixed impact on bonds. Lower energy prices are helping to reduce inflation and dampen inflation volatility, particularly in the United States. However, lower energy prices are causing some distress in several smaller high yield issuers, putting some pressure on that segment of the market.
Source: Bloomberg.
Russ Koesterich, CFA, is the Chief Investment Strategist for BlackRock. He is a regular contributor to The Blog and you can find more of his posts here.