Update: And just to prove that people are indeed, idiots, moments ago this hits:
ENERGY XXI GULF COAST, INC. PRICES UPSIZED PRIVATE OFFERING OF $1.45 BILLION OF 11.000% SENIOR SECURED SECOND LIEN NOTES DUE 2020
Back in August 2014, yield-starved bondholders were delighted to give American Eagle Energy $175 million in cash, and why not: the company promised them an 11% annual cash coupon. Seven months later the company is in default, and the same bondholders are looking at an 80% loss, without receiving even one coupon payment. Movie Gallery anyone?