More Trouble Seen for Junk Bonds

Samson was among six energy companies to default in the past six weeks, according to Fitch Ratings.

According to Fitch Ratings, the default rate among U.S. energy companies has accelerated to 4.8%, its highest level since 1999, up from 3.3% in August. Additionally, exploration and production companies are defaulting at an even higher rate of 8.5%, with default volume at its highest level in five years. In contrast, the broader U.S. corporate default is still a relatively low 2.9%. [Energy Sector Pressures Junk Bond ETFs]

iShares iBoxx $ High Yield Corporate Bond ETF

Tom Lydon’s clients own shares of HYG and JNK.