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Energy Junk Bonds Deemed ‘Silo of Misery’ as Oil Resumes Plunge

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Once again, a slide in oil prices is bringing pain to the junk-bond market.

In just two weeks, speculative-grade energy securities have tumbled more than 3 percent, dragging down the entire U.S. market, according to Bank of America Merrill Lynch index data. Yields on the debt have climbed to an average 9.34 percent, the highest since February and approaching levels that indicate investors view the typical security at high risk of default.