High-yield energy bond spreads are crashing-er. Up 15bps to 880bps today, these are record wides and massively impact the economics of these firms - no matter how much investors want to ignore it. This is contagiously spreading across the broad high yield and even investment grade credit markets as high yield bond prices crash below the mid-October Bullard lows...

HY Energy risk is exploding...

And that is contagiously infecting the entire credit complex...

Now we will see what BlackRock's liquidty fears really amount to.

Charts: Bloomberg