The energy sector started off 2020 with a volatile January. Crude prices fell 15.6%, their worst month since May 2019. The Wuhan coronavirus roiled commodity markets in January. Impacts on demand have already been significant.

The energy sector continued its rocky start to 2020. Crude prices continued to fall and now sit 27% lower than at the start of the year. Uncertainty has taken over markets, presenting challenging headwinds for commodities and energy markets.

Energy markets fall as economic uncertainty intensifies | Crude oil: Two steps forward, two steps back

Large-cap energy gained while the midstream sector sold off in November. Energy valuations appear relatively cheap heading into 2020.

Leveraged credit rises in September | Fundamentals and technicals balanced for now

Leveraged credit was mixed in October | High-rated credit continues to outperform

Leveraged credit rose in November, with loans outperforming HY Bonds. The duration-sensitive Barclays Agg was unable to recover from an early-month rate spike, ending down slightly on the month.

Steps to reopen the economy and progress toward a COVID-19 vaccine created an optimistic sentiment for much of the month, as HY Bonds, Senior Secured Loans and structured products posted strong returns. Interest rates remained relatively rangebound and the duration-sensitive Barclays Agg had a slight gain.

The recovery in markets continued in June, but at a slower pace amid concerns over rising COVID cases. HY Bonds and Senior Secured Loans still ended the month up, returning 0.97% and 1.14%, respectively, capping off the best quarter for each market since Q3 2009. Interest rates spiked early in the month before declining slightly, and the duration-sensitive Barclays Agg returned 0.63%.

Leveraged credit gains in July | Higher-rated credit continues to outperform