Playing Chicken In The High Yield Market

Wednesday, 21 October 2020, 00:45:00
Playing Chicken In The High Yield Market Tyler Durden Tue, 10/20/2020 – 18:45 By Nick Dunbar of Risky Finance When Covid-19 sent corporate bonds into a tailspin in March , it set in motion a game of chicken at overleveraged companies. Like James Dean and his rivals in the movie Rebel Without A Cause , the companies and their bondholders were like drivers racing towards a cliff. Should investors accept a painful write down on their bonds in order to keep companies alive and avoid even worse pain later on? Or should they call the company’s bluff and insist on full repayment of their debt? The Risky Finance corporate bond tool provides a ringside seat on some of these scenarios. Take the sector whose spreads declined the most on average since March – Oil & Gas. Investors in high yield bonds who bought that month have seen returns of 300% or more, while investment grade bonds have provided a 30% return since then. Survivorship Bias But there was also survivorship bias lurking behind this rosy picture.
— Zero Hedge

Transocean Receives NYSE Notice

Monday, 19 October 2020, 10:57:11
Transocean (NYSE: RIG) has received a formal notice from the New York Stock Exchange of non-compliance with NYSE continued listing standards.
— Rigzone

Oil And Gas Wells Drilling Market Accentuating Forecast Of Target Market, Size, Trends, Consumption And Dominating Players Schlumberger Ltd, Halliburton, Transocean Ltd, Weatherford International plc, Baker Hughes Incorporated

Tuesday, 13 October 2020, 17:37:49
Premium Market Insights delivers well-researched industry-wide information on the Oil And Gas Wells Drilling market. It studies the market’s essential aspects such as top participants, expansion strategies, business models, and other market features to gain improved market insights. Additionally, it
— OpenPR

Morgan Stanley expects more mega-mergers in the oil industry. Here are the 11 deals the bank says are most likely.

Wednesday, 7 October 2020, 17:10:00
Summary List Placement Hammered by a collapse in oil prices, the energy industry is entering a new phase focused on returns, which is likely to bring a wave of consolidation, analysts at Morgan Stanley said in a note Wednesday. Deals could help US oil companies Exxon and Chevron diversify and build out their clean-energy assets, they said. “European peers have begun to reposition portfolios away from oil & gas production,” the analysts said in the note. “Majors in the US have been slower to adapt despite sharing similar advantages of scale. Focusing on M&A in the power sector, companies with renewable development capabilities could be particularly attractive alternatives to oil & gas.” Today, the energy industry remains fragmented, the analysts said, resulting in a recent spike in deals. Most notably, Chevron acquired Noble Energy in early October through a $5 billion all-stock deal, while shale giants Devon Energy and WPX Energy announced plans to merge in late September. Read more: Layoffs, bankruptcies, and dividend cuts: We’re tracking how 20 energy giants from Shell to Exxon are responding to the collapse in oil prices “M&A has picked up again and, largely for the first time in recent memory, been rewarded by the market,” Morgan Stanley said. “We expect that to continue.” The bank says future deals are most likely between companies focused on oil production, and among the largest integrated oil majors and smaller energy producers.
— Business Insider

Transocean: Survivability Problems Are Piling Up (NYSE:RIG)

Monday, 28 September 2020, 19:54:31
Transocean is struggling to avoid a restructuring under chapter 11. The company’s massive debt is too disruptive and will have to be restructured.
— Seeking Alpha