Distressed debt companies – especially those reliant on selling energy to create cash flow – suffered a painful 2015.
With oil and coal prices simultaneously falling to unforeseen lows, the bonds and loans of energy companies lost much of their value. The agony quickly spread to other industries, from materials to retail to industrials, and traders struggled to find safe havens and preserve their paychecks amid the rout.
“It’s like a cancer. It’s spreading throughout the body,” said Michael Carley, the former co-head of distressed debt at UBS Group AG who is a co-founder of hedge-fund firm Lutetium Capital LLC. “If you look at all the segments in high-yield — chemicals, metals and mining, utilities, retail, health care — they’re all impacted.”
Of course, some investments stood out in their awfulness. What went so wrong for these companies? Here’s a look at the worst of the worst.
Read the full story at Bloomberg.com –