Wall Street's smart money is making big bets on a beaten-down industry
Wall Street's smart money is falling back in favor with the beaten-down energy sector.
Large private-equity investors moved to the sidelines of energy-related corporate debt as crude oil prices fell.
These days, however, they're doing the due diligence that precedes making big deals on the sector's continued recovery, according to Thomas McNulty, a Houston-based director in the valuations and financial risk management practice at Navigant.
These players are observing what may be a bottoming in the oil crash.
Oilfield services companies, which were hardest hit by the oil downturn, are a good indicator for how the broader industry is turning, according to McNulty.
"When you start to see them not lowering prices anymore for drilling day rates, equipment, fluid, water disposal, and in some cases maybe a tiny little price increase, that tells you that you're in the vicinity of a bottom," McNulty told Business Insider.
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