I am very,very, long energy. But annual U?S. consumption is ~2.7 TCF. So if we go into the draw w 3.9TCF.... It is hard to imagine nirvana for energy/gas producers in 3 months.... but I would be delighted!
Joe, here is the problem. Inventories are ~500bcf above average and above last year at this time. Ergo at 40bcf less production per quarter it takes ~ 12 quarters to get back to "normal"... 3 more years of pain!!
As an investor in LC loans, I read the article with interest. Unfortunately, the author did not tell me anything I had not witnessed. The article makes it seem like investors might be unaware that more borrowers are defaulting but LC gives loan data daily so you see it in your investments almost immediately. The other problem with the article is that the default rate going up by ~30 percent seems scary, but when that means it moved from 4% to 5.5% and your average borrower is paying 12% and net of fees you are receiving a 5.5 % to 6 % annual return after the increase in defaults well then not so bad... in fact, still better than many alternatives. Just my thoughts as I am not a shareholder but I do have a few thousand LC notes and plenty of history and data. I am a satisfied investor in LC notes/loans.