Everything Goes Wrong at Once for Distressed Energy Debt Issuers
- Crude oil collapse drives high yield to double-digit declines
- Darkening outlook could send bankruptcies soaring again
Photographer: Andrey Rudakov/Bloomberg
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Oil companies just can’t catch a break.
Energy bonds plummeted Monday to record lows, some of them with extraordinary drops of 10, 20 or even 30 cents on the dollar. The average spread over Treasuries for companies in the Bloomberg Barclays High Yield Energy index has surged above 10% for the first time since 2016, back when hundreds of energy-related companies were going bust or restructuring.