BONDS AWAY!

摘要

Energy is the largest sector in the $1.3-trillion high-yield bond market, accounting for 13% of the high-yield index. Further, the energy sector has been the largest new issuer of high-yield bonds since 2009, making up 12% to 13% of total new issuance. E&Ps specifically have taken a hefty slice of the energy high-yield market, at just over 50%. The domestic E&P high-yield bond market is approximately $54 billion, comprised of 58 companies, including 47 public companies, with equity-market capitalization ranging from $6 million (Dune Energy Inc., at press time) to $20 billion (Chesapeake Energy Corp.). From a bond investor's perspective, a public company's equity-market capitalization provides an attractive cushion and protection against value erosion, while the implied enterprise value offers a market valuation for the company's resource base.