Arnold: Half of US energy industry may go under
John Arnold, the legendary energy trader formerly of the hedge fund Centaurus Advisors, expects half of the U.S. energy industry to go bankrupt next year if the price of oil does not rebound.
Either way, bankruptcies among the industry will pick up as OPEC maintains production levels and as energy companies lose the ability to keep hedging against falling prices, he said.
His prediction could have big implications for the U.S. equity and debt markets, which are already on edge about the potential for a large number of defaults in the junk bond space.
