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A Shell employee in Bangkok filling up someone's gas tank. Photo: Mladen Antonov/AFP via Getty Images

Already struggling with mounting debt and falling market valuations, energy companies are at serious risk for mass bond defaults, especially those rated below investment grade, as oil prices now have fallen by more than 50% from their early January peak.

What's happening: Oil explorers and producers have around $86 billion of debt maturing over the next four years and companies with junk-rated debt were expected to have a hard time getting new financing this year, even before the COVID-19 and the weekend's OPEC fallout.

  • Moody's Investors Service warned in February that the likelihood oil and gas companies would see a wave of defaults was growing, the result of "continuing overproduction, depressed natural gas prices and widespread investor risk aversion toward the exploration and production sector."

Plus, the ratings agency said in a separate note in early February that the spike in energy junk-bond defaults last year was a “stalled not finished” cycle of fallout from the commodity crisis.

  • Debt-servicing problems have been “moving down the chain,” from exploration and production companies to oil-field services, support transportation, and midstream pipeline companies.

The big picture: Energy companies are the biggest issuers of junk bonds, accounting for more than 11% of the U.S. high-yield market.

  • “This was literally the last thing U.S. high-yield energy producers needed,” John McClain, a portfolio manager at Diamond Hill Capital Management, told FT. “There will be blood in the market on Monday.”

Go deeper: Oil prices plunge as market absorbs OPEC-Russia split

Go deeper

Updated 1 hour ago - Politics & Policy

First fatality confirmed in downtown Austin mass shooting

Police barricades near the scene of a shooting in Austin, Texas, on Saturday. Photo: Sergio Flores/Getty Images

A 25-year-old man died Sunday of injuries sustained in a mass shooting that wounded 13 other people in downtown Austin, Texas, the previous day, police confirmed.

Driving the news: Austin police named the victim as Douglas John Kantor, as they continued to search for one of two suspects. One suspect was taken into custody on Saturday following the shooting on 6th Street, a popular area with bars and restaurants.

Pelosi demands Barr and Sessions testify on data subpoenas

House Speaker Nancy Pelosi during an event San Francisco, California, on Friday. Photo: Miikka Skaffari/Getty Images

House Speaker Nancy Pelosi (D-Calif.) told CNN Sunday that former Attorneys General William Barr and Jeff Sessions should testify before Congress on reports that the Trump-era Department of Justice seized Democrats' and journalists' data records.

Driving the news: DOJ Inspector General Michael Horowitz announced Friday an internal investigation into the matter, and Pelosi expressed disbelief to CNN's Dana Bash at assertions that neither Barr nor Sessions knew of probes into lawmakers.

Updated 3 hours ago - World

Netanyahu is out as new Israeli government survives confidence vote

Photo: Gil Cohen-Magen/AFP via Getty Images

Israel has a new prime minister for the first time since 2009 after a power-sharing government led by Naftali Bennett survived a confidence vote on Sunday. Bennett was sworn in as prime minister.

Why it matters: Benjamin Netanyahu, Israel's longest-serving prime minister and the man around whom Israeli politics have revolved for a decade, will now become opposition leader. Bennett, a right-wing former Netanyahu protege, will lead the most ideologically diverse government in Israeli history.