The fires continue to burn in the oil sector. The operational environment in the energy space has become increasingly challenged since the summer of 2014 when oil prices began their descent from over $100 a barrel to just over $40 today. Many of the more leveraged oil companies have been staking their survival on the hopes that oil prices would recover sooner rather than later. The longer that oil prices persist near cycle lows, the more likely it is that a wave of defaults from the sector will eventually follow. But what is perhaps more notable is the following: what was once a problem that was largely confined to the commodities space is now spreading to other sectors of the market.
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