Latest Blog: Fireside Reading - 03/01/2024
-
-
CIO INSIGHTS
-
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 ARTICLERELATED ARTICLES
-
Jobs 09-04-2015
Markets have taken today's employment release as evidence of a weakeningjobs market. A mere 173,000 net new jobs were ...
READ BLOG POST -
Hot As Hell 11-16-2017
Hell is hot, as everyone knows. Everyone "knows" this, but there really is no conclusive evidence: no ...
READ BLOG POST -
A Year-End Thought 12-31-2015
This week, my college basketball team visited southern California, and I was lucky enough to spend some time with them ...
READ BLOG POST
-
We strive build portfolios of best-in-class investment managers across all asset classes. If you would like to be considered for our portfolios, please contact us using our manager inquiries form.
- MANAGER INQUIRIES
-
SUBSCRIBE TO ANGELES' INSIGHTS
Get the latest investment information and stay on top of market trends.
SUBSCRIBE -
CONTACT US
SANTA MONICA
429 SANTA MONICA BLVD,
SUITE 650
SANTA MONICA, CA 90401
310.393.6300
GET DIRECTIONS -
NEW YORK
375 PARK AVENUE,
SUITE 2209
NEW YORK, NY 10152
212.451.9240
GET DIRECTIONS -
HOUSTON
5151 SAN FELIPE ST,
SUITE 1480
HOUSTON, TX 77056
713.832.3670
GET DIRECTIONS