, Columnist
Goldman Rallies Bears on Energy Junk Debt
Credit traders are growing skeptical but still substantially underpricing the risk.
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For years, bond traders have been hard-wired to "buy the dip." This has often worked well in a world awash in central bank cash, when any sell-off has quickly been answered by a rally.
But this time may be different when it comes to junk-rated debt of energy companies. These securities have been rebounding in force from a painful 2014 and 2015, even as the fundamental backdrop deteriorates.