American Oil Drillers Were Hanging on by a Thread. Then Came the Virus.
Energy companies were major issuers of junk bonds to finance expansion. But now they are in trouble as capital has dried up and oil prices have cratered.
Justin Guay
301d ago
The @federalreserve corporate bond buying program managed by @blackrock is necessary for so many industries. But if we don’t take appropriate steps it will be a stealth oil bailout for the $86 billion in junk oil debt coming due
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The energy sector has buckled in recent weeks as the global demand for oil suddenly shriveled and oil prices plunged – trading now one-third their most recent high.
“Tech Disruption was already cratering oil and gas. Saudi and Russia are fighting over a market at “peak demand”, and moving down the backside.
Only cheap producers will remain, shortly. That’s not us, at all.”