Energy companies are at risk of being in the default position in corporate bonds against the background of how the oil prices do not show readiness to rise to 13-year lows - at AMarkets materials.
Businesses petroleum segment clearly have to reduce staff in order to optimize costs. This is the question of the signals of recession in the US. Do not forget that the energy industry over the last 5-7 years has been the most active employer with the highest salaries. Nearly half of all outstanding industry of oil and gas bonds in February traded at junk debt - wsj.com data.
About $ 199 billion of corporate debt sector is now in a precarious position. US corporations whose bonds are now in the "junk" zone - Hess Corp., Devon Energy Corp., Williams Partners LP. Reducing the credit rating does not allow companies to refinance current debt and to start new projects. The energy industry has already lost 250,000 rabmest globally against the backdrop of 70% -th collapse in oil prices.