Latest Blog: Yellow Flag - 05/10/2022
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: 10-29-2014
Oil 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
Inside the Triangle 05-23-2016
Complexity makes investing so challenging. Unlike the pure sciences, there are no hard truths in investing, no ...READ MORE
Seven Lean Years? Done in Seven Minutes 04-30-2015
In Genesis (41:27), Joseph interprets Pharaoh's dream of 7 fat cows followed by 7 lean (and apparently, ugly) cows, as ...READ MORE
The Present is the Future (at least in bond land) 10-27-2014
In our long-term assumptions, we generally assume that the total return in fixed income is pretty close to its starting ...READ MORE
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