Bonds from California Resources (CRC, Financial), a highly levered oil and gas exploration and production company, were volatile due to perceived legislative risk in California. Proposals to ban fracking and high-pressure recovery systems have been placed before the legislature, and although California Resources uses neither of these techniques, its bonds were affected by the “noise” surrounding these issues.
From First Eagle Investment (Trades, Portfolio)'s High Yield Fund fourth-quarter 2019 commentary.
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