Wilbur Ross, specializing in debt securities of companies that are in a difficult financial situation, recommends buying bonds energy segment - by AMarkets materials.
Ross Foundation WL Ross & Co. Energy purchased debt (Breitburn Energy Partners LP, Permian Resources LLC et al.) in the hundreds of millions of dollars to gain control over oil and gas companies, is experiencing the worst of times against the background of falling costs of raw materials. The number one goal - to become a shareholder in the event that the company defaults fall into the funnel, and the creditors receive a portion of the assets at their disposal. There are different opinions on the market - worth buying bonds at high risk simply because paper unprecedentedly cheap. In addition, the market there is a category of energy companies such as EXCO or, for example, the Comstock, who are more likely to stand up in difficult times.
The criterion of survival, to which you can navigate to the investor - low (or relatively easily controlled) production costs. During the seven months of last year US energy garbage bonds lost $ 56.7 billion in market value. At the same time the yield rate jumped to 21% (Bloomberg data).