- "The focus is on stressed, not distressed oil and gas companies in good areas," says Patrick Fleury, managing director at Blackstone's (NYSE:BX) GSO Capital Partners. The team there feels oil prices are set to renew their decline and wants to hold assets of high enough quality and low enough cost to pay off if the price forecast is correct.
- It's a shift in strategy from late last year and earlier this year where GSO was piling into distressed opportunities. "Now I rather own paper that’s paying me 7% on a quality asset than buy debt on a company that has bad assets and high cost structure even though they will pay double-digits in coupon," says Fleury.
- Source: Bloomberg
- ETFs: XLE, VDE, ERX, OIH, XOP, ERY, DIG, DUG, BGR, IYE, IEO, FENY, PXE, FIF, PXJ, NDP, RYE, FXN, DDG