The riskier end of the energy bond market has lately suffered a sharp blow in response to an epic oil price crash as the coronavirus pandemic and oil price war pushed bonds of oil and gas producers into distressed territory. According to a recent Financial Times article , nearly $110 billion of U.S. energy bonds have lately fallen into distressed status, working out to almost 12 percent of the $936 billion in energy junk bonds. Maybe it’s time to go hunting for the rich pickings available in the sector, with U.S. Treasuries dropping to all-time lows. From a purely technical viewpoint, junk bonds are the same as regular bonds, the only difference being that the issuers have poorer credit ratings. Investment-grade bonds are issued by companies with low- to medium-risk profiles. These high-quality bonds usually range from Standard & Poor ratings of AAA to BBB. They typically offer lower […]