US oil exploration and production companies, long mainstays of the bond market, have gone missing. The sudden drought of energy bonds reflects a two-fold problem for oil companies. Between 2010 and 2018, US oil exploration and production companies raised a whopping $313 billion through the bond market, according to Dealogic. Wall Street wants these highly leveraged oil companies to have cash left over to reward shareholders with dividends and buybacks. Distressed oil companiesStill, the recent silence in the junk bond market underscores the risk that companies with weak balance sheets face during times of market stress.

Source: CNN February 05, 2019 14:03 UTC