Grant: Beware Transocean Bonds, Halcon Offers Opportunity

The high yield market is being held down by lower oil prices and bond investors need to be careful of service players like Transocean, said James Grant, publisher of 'Grant's Interest Rate Observer'. Grant added that Transocean's bonds are not priced for a protracted period of lower energy prices, only a temporary one, and are susceptible to a sharp fall. He said Halcon may be a speculative driller with bonds worth buying because it hedged its production at much higher prices enabling it to withstand the current environment. Finally, Grant said courageous investors will be able to find value in crumbling Russian bonds in names like Sberbank.