{"id":47338,"date":"2014-12-12T19:00:11","date_gmt":"2014-12-12T19:00:11","guid":{"rendered":"http:\/\/127.0.0.1\/site\/2017\/2\/1985\/bloomberg_fed_bubble_bursts_in_550_billion_of_energy_debt_credit_markets\/"},"modified":"2014-12-12T19:00:11","modified_gmt":"2014-12-12T19:00:11","slug":"bloomberg_fed_bubble_bursts_in_550_billion_of_energy_debt_credit_markets","status":"publish","type":"post","link":"https:\/\/kendallharmon.net\/?p=47338","title":{"rendered":"(Bloomberg) Fed Bubble Bursts in $550 Billion of Energy Debt: Credit Markets"},"content":{"rendered":"<p>The danger of stimulus-induced bubbles is starting to play out in the market for energy-company debt.<\/p>\n<p>Since early 2010, energy producers have raised $550 billion of new bonds and loans as the Federal Reserve held borrowing costs near zero, according to Deutsche Bank AG. With oil prices plunging, investors are questioning the ability of some issuers to meet their debt obligations. Research firm CreditSights Inc. predicts the default rate for energy junk bonds will double to eight percent next year.<\/p>\n<p>\u201cAnything that becomes a mania &#8212; it ends badly,\u201d\u009d said Tim Gramatovich, who helps manage more than $800 million as chief investment officer of Santa Barbara, California-based Peritus Asset Management. \u201cAnd this is a mania.\u201d\u009d<\/p>\n<p><a href=\"http:\/\/www.bloomberg.com\/news\/2014-12-11\/fed-bubble-bursts-in-550-billion-of-energy-debt-credit-markets.html\">Read it all<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The danger of stimulus-induced bubbles is starting to play out in the market for energy-company debt. Since early 2010, energy producers have raised $550 billion of new bonds and loans as the Federal Reserve held borrowing costs near zero, according<span class=\"ellipsis\">&hellip;<\/span><\/p>\n<div class=\"read-more\"><a href=\"https:\/\/kendallharmon.net\/?p=47338\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":794,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[40,589,595,149,140,168,671,585,584,34],"tags":[],"class_list":["post-47338","post","type-post","status-publish","format-standard","hentry","category-economics-politics","category-corporationscorporate-life","category-credit-markets","category-economy","category-energy-natural-resources","category-ethics-moral-theology","category-federal-reserve","category-the-banking-systemsector","category-the-u-s-government","category-theology"],"_links":{"self":[{"href":"https:\/\/kendallharmon.net\/index.php?rest_route=\/wp\/v2\/posts\/47338","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/kendallharmon.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/kendallharmon.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/kendallharmon.net\/index.php?rest_route=\/wp\/v2\/users\/794"}],"replies":[{"embeddable":true,"href":"https:\/\/kendallharmon.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=47338"}],"version-history":[{"count":0,"href":"https:\/\/kendallharmon.net\/index.php?rest_route=\/wp\/v2\/posts\/47338\/revisions"}],"wp:attachment":[{"href":"https:\/\/kendallharmon.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=47338"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/kendallharmon.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=47338"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kendallharmon.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=47338"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}