The New Threat to Energy-Company Bonds: Virus Fears

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The New Threat to Energy-Company Bonds: Virus Fears
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Investors have lost their recent appetite for energy companies’ debt as the coronavirus has spread, creating challenges for companies still needing financing

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The economic threat posed by the coronavirus is helping erode demand for energy-company debt just weeks after bond issuance in the sector surged, highlighting the virus’s far-reaching effects on companies and financial markets.

Early last month, a surprise rally in the debt of energy companies allowed oil and gas businesses to issue the largest amount of speculative-grade bonds in one week since just before oil prices crashed in the fall of 2014.

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