07 August 2015 by lberuti
Since the beginning of the summer we have been used to seeing the commodity related sectors underperform consistently the rest of the market. The fall of the commodity prices severely impacted the likes of RIG ( Transocean LTD ), ABX ( Barrick Gold Corp ), or FCX ( Freeport-McMoRan Inc ) and the risk premia of these high beta names were under severe pressure. Since the beginning of the week, there is a new cohort of names which joined the ranks of battered credits: media companies. It started with DIS ( Walt Disney Co ) which reported disappointing earnings raising concerns about subscriber erosion and the long term viability of the cable model, and rapidly spread to CBS ( CBS Corporation ), TWX ( Time Warner Inc ) and today BSY ( SKY pLc ). All of a sudden, it is no longer all about the widest credits, and low beta names appear vulnerable as well.