FxWirePro: Daily Commodity Tracker - 21st March, 2022 
Latest flow data, we shared in our fund flow analysis report showed investors ploughed in billions of Dollars into US high yield bonds as risk appetite improves across globe after calamity in January and February.
Naturally junk bond yields have fallen sharply and equities have rallied and rallied in some cases more than 200%.
Latest data from BofAML shows, yield in US high yield CCC or below (option adjusted) dropped after reaching as high as 20.5% to around 18%. But that is far higher than 6.3% seen during summer of 2014. This market is pretty lucrative for investors due to its high yield if crude oil rallies.
Major driver that has been upsetting US benchmark since last year has been this high yield companies and banks’ exposure to them. So if yield improves further from here and oil price recovers, we expect S&P 500 to reach new all-time highs around 2200 area.
Crude oil declining today, WTI is currently trading at $37.5/barrel and Brent at $1.8/barrel premium.
