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| Stansbury Research detailing on how the bonds that were wrote to finance the most recent oil boom are in danger of going overboard. Texas Fed told banks they are not required to "mark the market" on oil field equipt values. 3rd world countries such as Mexico and Venezula economies and currencies are really pressured without the foundation of oil revenue, Russia ( and even the Saudi') keeping pumping no matter the price as they need the cash inflows........
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SR blurb...........Nearly all the growth in the U.S. high-yield bond market over the last decade is related to oil and gas exploration and production. Since 2010, more than $500 billion worth of new corporate debt was raised for U.S. onshore oil and gas producers. It's this capital that financed the oil boom – which is responsible for all the net job creation in the U.S. since 2009.
These debts cannot be repaid with oil prices at less than $60. And yet they're all coming due between 2016 and 2020.
As these debts go bad, even major oil companies will see their bonds downgraded and their dividends cut. There will be a huge opportunity for patient and liquid investors to buy tremendous energy assets out of these defaults. But for the banks, insurance companies, private-equity funds, and pension funds that provided this initial capital, there's a tremendous amount of pain ahead. Expect major bank collapses in Texas.
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Sr blurb on stock buyback...........Deere
.......... five companies whose debt-funded buybacks over the past year go so far beyond merely stupid that their actions cry out for an investigation of the management team (and a complete replacement of their boards).
Deere & co Excess buybacks 285% Debt to Equity... 481% Debt to Earnings 29.7%
The people running these companies are driving into a brick wall... and pressing harder on the accelerator.
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Good big picture look at oil fundamentals for 2016
