CNBC ran a headline asking Could the oil collapse cause the next credit crisis? “It’s not just the Saudis who could get much poorer from the oil price free fall,” says CNBC. “Everyone could suffer if the collapse triggers a wave of defaults through the high-yield debt market, and in turn, hits stocks. The first to fall: the banks that were last hit by the housing crisis. Why could that happen? Well, energy companies make up anywhere from 15 to 20 percent of all U.S. junk debt, according to various sources.”
Posted on: Sat, 29 Nov 2014 12:33:00 +0000
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