Mon, November 24, 2014 5:09 pm
Hedge Funds Bet on Coal-Mining Failures
Investors Make Trades in Anticipation of Coal Company Bankruptcies
DTC’s CEO, Ted O’Brien, discusses investment in the coal market with Wall Street Journal, read more below
With coal prices at historic lows due mainly to weak demand and cheap natural gas, investors have been abandoning the sector. With coal-mining companies traded on the New York Stock Exchange heavily down on last year, Doyle Trading Consultants have been monitoring the distressed debt situation closely over the past few months and looking at how hedge funds plan to cash in on the weak market.
People see blood in the water, and that presents an opportunity,” said Ted O’Brien, CEO at Doyle Trading Consultants. He said he is advising more than a dozen investment firms that specialize in risky debt that have bought or are considering buying coal-company bonds.