The spreads over Treasuries of US high-yield corporate bonds have risen further since the end of November, continuing their increase since the autumn. This has largely been driven by a rise in borrowing costs for energy firms, whose finances have come under pressure following the collapse of the oil price. That being said, there have also been increases in the spreads of bonds elsewhere in the economy. Indeed, in H2 2014, as the price of crude oil virtually halved, spreads increased in all sectors apart from banking.
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