U.S. Junk Bonds See Highest Distressed Ratio Since '09, S&P Says
Plummeting oil and gas prices pushed the percentage of junk bonds trading at distressed levels to the highest since the financial crisis, according to Standard & Poor’s.
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Plummeting oil and gas prices pushed the percentage of junk bonds trading at distressed levels to the highest since the markets were recovering from the financial crisis, according to Standard & Poor’s.
The ratings firm’s so-called distress ratio increased to 20.1 percent in November, up from 19.1 percent in October and the most since September 2009, when it hit 23.5 percent. The ratio is calculated by dividing the number of distressed securities by the total amount of speculative-grade debt outstanding.