“This $550 Billion Mania Ends Badly,” Energy Companies Are “Shut Out Of The Credit Market”
by Tyler Durden
ZeroHedge.com
12/12/2014
“Anything that becomes a mania — it ends badly,” warns one bond manager, reflecting on the $550 billion of new bonds and loans issued by energy producers since 2010, “and this is a mania.” As Bloomberg quite eloquently notes, the danger of stimulus-induced bubbles is starting to play out in the market for energy-company debt – as HY energy spreads near 1000bps – all thanks to the mal-investment boom sparked by artificially low rates manufactured by The Fed. “It’s been super cheap,” notes one credit analyst. That is over!! As oil & gas companies are “virtually shut out of the market” and will have to “rely on a combination of asset sales” and their credit lines. Welcome to the boom-induced bust…
The Rest…HERE
