{"id":16384,"date":"2016-01-12T14:36:56","date_gmt":"2016-01-12T19:36:56","guid":{"rendered":"http:\/\/olduvai.ca\/?p=16384"},"modified":"2016-01-12T14:36:56","modified_gmt":"2016-01-12T19:36:56","slug":"after-noble-here-are-the-next-18-us-energy-companies-to-be-junked","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=16384","title":{"rendered":"After Noble, Here Are The Next 18 US Energy Companies To Be Junked"},"content":{"rendered":"

After Noble, Here Are The Next 18 US Energy Companies To Be Junked<\/a><\/h3>\n
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Following Noble Group’s downgrade to junk and “Enron moment,”<\/a>\u00a0we thought it worth considering\u00a0who is next to be junked?<\/strong><\/p>\n

Judging by the market’s expectations, there are now\u00a0110 credits that are rated “investment grade” but trade like junk<\/strong>, and as\u00a0Markit’s Neil Mehta notes<\/a>, this is\u00a0up from just 21 in November<\/strong>.<\/p>\n

\"\"<\/a><\/p>\n

Source: @NeilCredit<\/em><\/a><\/p>\n

There are 18 US Energy names (and\u00a023 globally) that are\u00a0currently traded at CDS levels implying junk status, with Diamond Offshore, Nabors, and Encana top of the list.<\/strong><\/em><\/p>\n

*\u00a0 *\u00a0 *<\/em><\/p>\n

And finally, away from the energy complex, we note that\u00a0Freeport McMoran is at the top of the list of likely junk downgrades<\/strong>\u00a0and today’s carnage has extended Carl Icahn’s losses…<\/p>\n

\"\"<\/a><\/p>\n

 <\/p>\n

as it seems FCX stockholders are getting the joke…<\/p>\n

Freeport-McMoRan Inc<\/strong><\/p>\n

(1739bps; Av BBB; Imp CCC)<\/em><\/p>\n

\"\"<\/em><\/p>\n

The US copper and gold producer has seen its 5-yr CDS spread trading at implied junk levels for the last six months. Troubles have intensified over the past month and credit spreads\u00a0now imply a 79% chance of default within the next five years.<\/strong>\u00a0Moody\u2019s placed the $6bn company on review for a possible\u00a0downgrade just last week<\/a>.<\/p>\n

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After Noble, Here Are The Next 18 US Energy Companies To Be Junked Following Noble Group’s downgrade to junk and “Enron moment,”\u00a0we thought it worth considering\u00a0who is next to be junked? Judging by the market’s expectations, there are now\u00a0110 credits that are rated “investment grade” but trade like junk, and as\u00a0Markit’s Neil Mehta notes, this […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[11651,1626,2656,200,11652,8580,7571,4318],"class_list":["post-16384","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-carl-icahn","tag-cds","tag-copper","tag-default","tag-enron","tag-investment-grade","tag-markit","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16384","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16384"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16384\/revisions"}],"predecessor-version":[{"id":16385,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16384\/revisions\/16385"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16384"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16384"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16384"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}