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Why stock and bond markets need $50 oil

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High-yield bonds have bounced back from the winter's lows, and junk-rated debt will do even better if oil keeps making gains.

Citigroup energy strategists have targeted $50 for year-end West Texas Intermediate crude prices. If that proves true, there could be an interesting impact on the high-yield debt market, which was crushed by the sell-off in energy company bonds.

Credit analysts at Citigroup studied the relationship, and they found where the correlation matters most for investors.