CLIENT LOGIN
-
-
CIO INSIGHTS
-
BACK TO CIO INSIGHTS
BACK TO ARTICLES & INSIGHTS HOME
-
-
-
-
Investment Insights are written by Angeles' CIO Michael Rosen
Michael has more than 30 years experience as an institutional portfolio manager, investment strategist, trader and academic.
DOUBLE LEVERAGE?
Published: 10-29-2014Oil prices are down about $30 from their highs; great news for consumers and the big oil importers (China, Korea, India). Not so good news for the big producers (Saudi, Russia, Venezuela).
Oil companies have been borrowing more, but most of the major multinationals have very strong balance sheets and generate a great deal of cash. But the biggest oil companies in the world are state-owned, and they have been especially thirsty for debt. The Latin American giants stand-out:
- Petrobras has $147 billion of sales and $123 billion of debt
- PDVSA has $127 billion of sales and $120 billion of debt
- Pemex has $127 billion of sales and $134 billion of debt
So not only are these companies levered to the price oil, they are levered to interest rates as well. Double down?
PRINT THIS ARTICLE-
-
Picking Up the Pace 08-28-2015
Lost amidst the market turmoil this week were a number of reports of a strengthening US economy. Consumer confidence ...
READ MORE -
Beach Reading 04-29-2021
Beach weather is upon us in Southern California, so here are some book suggestions from my last few months of ...
READ MORE
-
-
CONNECT WITH USSUBSCRIBE TO ANGELES' INSIGHTS
Get the latest investment information and stay on top of market trends.
-
SANTA MONICA
429 SANTA MONICA BLVD
SUITE 650
SANTA MONICA, CA 90401
310.393.6300
GET DIRECTIONS -
CONTACT US
NEW YORK
375 PARK AVENUE
SUITE 2209
NEW YORK, NY 10152
212.451.9240
GET DIRECTIONS -
CHICAGO
400 N. MICHIGAN AVE
SUITE S1700
CHICAGO, IL 60611
312.212.6843
GET DIRECTIONS
