So even Bloomberg reporting on this now... Fed Bubble has Burst, $550 billion of Energy debt.... Bejeeeeez! The danger of stimulus induced bubbles, are now starting to play out in the market for Energy-Company debt. Since early 2010 energy producers have raised $550 billion of new bonds and loans as the Federal Reserve held borrowing costs to near zero. According to Deutsche Bank with oil prices plunging, investors are now questioning the ability of some issuers to meet their debt obligations, its also predicted that the default rate for energy Junk bonds will go up to 8% even more, this will be the collateral backing 100s of millions for even more Loans throughout the system....
Posted on: Tue, 16 Dec 2014 19:32:54 +0000