The three-month rally in oil may not be enough to turn around the fortunes of the riskiest U.S. energy companies, but it has allowed them to remove an undesirable label: distressed. The average extra yield investors now demand to hold junk energy bonds rather than Treasuries has fallen below the 10 percent threshold at which bonds are considered distressed. For investors who’ve had the stomach to hold these securities, the rally has resulted in gains of more than 30 percent since oil bottomed in February.
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