While overleveraged exploration and production (E&P) companies most exposed to the shale boom remain pressured, some investment opportunities have arisen.
Entries filed under 'Energy'
With oil prices recently up nearly two-thirds from their 13-year low in February, bullish sentiment has increased, despite concerns about near-record stockpiles.
Negative sentiment toward energy bonds has extended into other areas of the high-yield market. That may present an attractive opportunity.
Not all segments of the energy sector are affected equally.
Sure, sharp drops in commodities prices have hurt major producing countries that have not been able to diversify their economies away from commodities, but heavy importers should benefit.
While a number of institutional investors have divested companies engaged in fossil fuels amid growing concerns about climate change, such decisions may compromise their fiduciary responsibility by sacrificing performance.
Expectations of stronger second-quarter growth may have to be trimmed if gasoline prices rise sharply.