Oaktree Investing in Energy Debt Amid Oil Price Drop – Businessweek

Oaktree Capital Group LLC (OAK:US), the world’s biggest distressed-debt investor, is buying bonds of energy companies as oil prices plunge, co-Chairman Howard Marks said.“Prices of energy-related debt have fallen, in some cases substantially,” Marks said today at Goldman Sachs Group Inc.’s financial-services conference in New York. “If your product falls in price by 40 percent, there are a lot of levered businesses that aren’t going to service your debt. We have been investing.”High-yield bonds of energy companies have declined 11.5 percent since June 19, when oil prices peaked this year. Brent has since tumbled about 42 percent because of slower growth in global demand combined with surging production in North America. A sustained slump in crude may trigger a significant rise in the number of energy companies defaulting, Deutsche Bank AG credit strategists Oleg Melentyev and Daniel Sorid said in a report yesterday.

via Oaktree Investing in Energy Debt Amid Oil Price Drop, Marks Says – Businessweek.

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