Junk Bond Yields Highest in Four Years, Goldman Discusses Oil in Teens; 150 Energy Companies May Go Bankrupt
by Mike ‘Mish’ Shedlock
Mish Talk
Under $20 Oil?
Oil dipped below $30 again today. As usual dip buyers or shorts covering pushed the price positive for a while. This time, however, the bounce did not last even one day. Oil is flirting with $29 and Junk Energy-Bond Costs Soar.
The cost for U.S. high-yield energy companies to borrow in the bond market soared to the highest level in more than four years as Goldman Sachs Group Inc. said oil may drop below $20 a barrel.
The yield premium investors demand to hold the junk-rated debt sold by energy companies over ultra-safe Treasuries widened to the most since 2012, part of a global rout that has seen stocks tumble toward a bear market and volatility rise amid fears of a worldwide economic slowdown. Crude could drop “into the teens,” from about $30 on Tuesday, before supply and demand are brought back into balance, according to Goldman Sachs.
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Source: http://financialsurvivalnetwork.com/2016/02/junk-bond-yields-highest-in-four-years-goldman-discusses-oil-in-teens-150-energy-companies-may-go-bankrupt/?utm_source=rss&utm_medium=rss&utm_campaign=junk-bond-yields-highest-in-four-years-goldman-disc
