Bond investors lose $150bn in oil price fall

Commodity has fallen to $41

The fall in commodities has meant the value of oil and gas company bonds has fallen by more than $150bn since June 2014.

According to analysis by the Financial Times, more than $150bn has been lost from 1,278 actively traded bonds which are denominated in dollar, sterling and yen. The price of crude oil per barrel peaked in June 2014 at $116 before plummeting down to less than $30. It has since begun rising and has now reached $41. Borrowing by oil and gas companies has also tripled from $1.1trn in 2006 to $3trn in 2014 according to the Bank of International Settlements (BIS). Emerging market oil companies such as Petrobras in Brazil and US independent producers saw the sharpest increase in debt. Oil...