Frackers Prospects in a Cheap Oil World

Frackers Prospects in a Cheap Oil World


The fracking industry has been a hard industry to follow for many investors, especially those focused entirely on investing in energy. What was quickly a boom in the United States has turned out to be on its way to be a fast bust. The boom was in part due to a low interest rate environment. Many of these new companies were able to secure easy financing and none of the lenders really cared because of how much money frackers were making. As oil has fallen to the mid $30 range the conditions that were once set in motion have changed drastically and are going to affect the future prospects of frackers everywhere.

It was announced by the International Energy Agency (IEA) that the over abundance of supply has outpaced the demand already by 1.5 million barrels on a daily basis, just starting from the start of this year. IEA went on record to say that the oil market could drown itself in its only supply. The question on everyone’s mind is just what happened?

The Overview of the Situation

In terms of the oversupply it is partly due to the frackers pumping out all of this U.S. crude oil into production, already doubling the amount produced in the past five years. Not only that but Saudi Arabia has been attempting to out maneuver U.S. frackers and get them out by flooding the market. In just Iraq alone the output was upped to 4 million barrels per day, something that is more than double their previous output for production. Libya increased as well followed by Iran getting out of their long sanctioned ties and looking to start producing oil again.

It was common knowledge over a year ago that in order to remain profitable, frackers needed oil prices to be at around $55 to $60 a barrel. It’s a wonder that any of these fracking companies are still even in existence with the absurd price drop as of late. Some of the reasons these companies are holding on have to do with frackers gaining new technology that is cutting costs and would allow them to profit on a minimum of $40 a barrel instead. That isn’t to say that some companies have been weeded out because that is still the case.

There is a dilemma at hand though. If prices to go back up then frackers are going to start producing more and then inadvertently drive the prices back down again. There is no way right now to justify the price increase since it comes down to basic economics and there is no increased demand right now. There have been large layoffs paired with bankruptcies and companies collapsing under the market pressure. If demand would somehow increase for some reason then there would be an argument for prices to reach the higher levels they once reached. There are a lot of factors that came into play that included China’s rapid growth and the Federal Reserve stimulus, both putting up the price of oil a few years ago.

Growth Concerns, Financials Push Wall Street Lower

Growth Concerns, Financials Push Wall Street Lower


wall street

On the one hand, the European financial sector is facing erratic profitability crisis, while; at the same time, the U.S. stocks are dropping at a rapid pace, as well. Global growth is being highly impacted by the ever – increasing dropping market shares and expensive monetary policies imposed by banks. Signs of stress can be seen in all major nations and future of the financial sector seems unpredictable and uncertain.


Due to numerous factors, even the U.S. Federal Reserve has been slightly secretive about their decisions. No one can be absolutely certain anymore regarding the future of rates. The situation has further worsened, especially taken into account the sudden drop of 2.6 percent in S&P financial index. This is undoubtedly the worst performing year as far as S&P sectors are concerned.


Investors are adapting to a laid – back kind of an attitude. This is as a result of the increasingly uncertain monetary policies. This subsequently is leading to question of whether the next big recession is in order to follow.


“I think that’s what financials are reflecting – that their net interest margins are going to be further compressed under collapsing bond yields,” said Mark Luschini, Chief Investment Strategist at Janney Montgomery Scott in Philadelphia.


Stocks of leading internet forums such as Facebook and Amazon had been marked as a form of strength in the previous year. In fact, fund managers have even said that last year’s gains, especially of the internet stocks such as Facebook have resulted in an increase of thirty – seven percent. Netflix can also be soaring with a total of 144 percent. This has naturally led people to choose internet shares as their first preference. However, their shares also face slight drops of 4.2 percent and 2.8 percent, respectively.


However, Chesapeake Energy faced a downfall of 33.3 percent at $2.04. They are hammered to such an extent that they are forced to opt for an alternative restructuring option with the help of their existing adviser, Kirkland & Ellis.


At the same time, the Dow Jones closed down at 177.92 points alongside the S&P 500 that lost 26.62 points. Nasdaq Composite too further dropped 79.39 points.


Fluctuating oil prices are also to a certain extent, adding tension to the already existing barriers that lay toward achieving a global growth in terms of finance and economy.


The technology sector is not spared either. Tech Company, Cognizant resulted in a drop of 7.7 percent to 54.05 dollars. The IT services also issue a weak sales forecast.


According to Thomson Reuters data, “Approximately 10.6 billion shares changed hands on U.S. exchanges, above the 9.4 billion daily average for the past 20 trading days.”


Declining issues outnumbered advancing ones on the NYSE by 2,484 to 618, for a 4.02-to-1 ratio on the downside; on the Nasdaq, 2,029 issues fell and 804 advanced for a 2.52-to-1 ratio favoring decliners. The S&P 500 posted 7 new 52-week highs and 97 new lows; the Nasdaq recorded 4 new highs and 495 new lows.

Goldman Joins Hands With America’s Premier Financing Groups As Its Co-head Bids Adieu

Goldman Joins Hands With America’s Premier Financing Groups As Its Co-head Bids Adieu

Goldman Sachs Group Inc (GS.N), a multinational investment banking firm, has decided to merge their leveraged and structured finance groups in America as the co –head of leveraged finance firm, named Craig Packer bids adieu.


The leading firm offers an extensive range of financial services to a diversified and substantial client base that includes financial institutions, corporations, governments and high-net-worth individuals.


The company holds a reputation of engaging in productive global investment banking, security and investment management services in addition to the institutional clients, and with the new initiative, it seems to be striving toward achieving the motive, furthermore.


Founded in 1869, Goldman Sachs provides several other financial services as well, including mergers and acquisition advices, underwriting services, asset management services, prime brokerage to their clients.


Headquartered at 200 West Street in the Lower Manhattan area of New York City, the company’s clients primarily include corporations, institutionalized individuals and sometimes even government bodies. The firm also further engages in market making and other private equity deals. They are also known to the world as a primary dealer of America’s treasury security market.


The new credit finance group will be led by the former co –head of leveraged finance in the America’s Christina Minnis. She is reported to be leading the new establishment along with the head of structured finance in America, Vivek Bantwal, who has run structured finance since 2015.


One of the spokesmen from Goldman Sachs confirmed the contents of the memos.

Thomson Reuters data says that the moves arise right after Goldman Sachs decided to build up its debt underwriting capabilities. The firm had obtained the 6th rank in 2015 for U.S. bond underwriting, behind banks with larger balance sheets such as JPMorgan Chase & Co (JPM.N) and Citigroup Inc (C.N).


After being hit hard by the 2008 economic crisis, Goldman Sachs has been constantly coming up with ways to avoid such an incident from occurring ever again. Although their involvement with subprime mortgages was majorly the reason why they were impacted in such a negative manner, their policies have been well – structured and designed with deep thought ever since. They were hit so hard that the U.S. government had to bail them out as a part of their rescue. They certainly don’t want to face such a situation ever again.


Moreover, they are in constant connection with the governmental bodies too. For instance, there are numerous former Goldman executives that have moved on to government positions after their term of service at Goldman Sachs. Some of them include Robert Rubin and Henry Paulson, who have served as United States Secretary of the Treasury under Presidents, Bill Clinton and George W. Bush, respectively.


Their four major aspects of focus in the years to come have been: investment banking, institutional client services, investing and lending and investment management, as per what is mentioned on their website. Over the years, they have raised an enormous amount of revenue.

What’s the Difference Between Secure and Unsecured Debt

What’s the Difference Between Secure and Unsecured Debt

secure debt

If you’re going through the process of applying for title loans, registration loans, bank loans, or considering consolidating your debt, the phrases “secure” and/ord “unsecure” debt have probably come up at least once so far. You may have smiled and nodded, and pretended like you understood every piece of insane lending jargon they threw at you. But inside you were screaming, “Wait, what is that? Is that important?! Should I know this?!”


Short answer: you should know it in order to fully understand what you can expect out of your new financial situation. Here’s your chance!


Understanding Creditworthiness


So the first thing you need to know before moving on to secure and unsecured debts is how creditworthiness works. Essentially, when a loan applicant approaches a credit-provider, the credit-provider wants to know that you’ll be able to pay them back their money; it’s a matter of safety for them.


The more proof you have that you can pay off that debt (and/or that you have successfully paid off your debts in the past) then they’ll be more likely to trust you with a loan. Creditworthiness is typically measured by two indicators:


  1. Your credit score and financial history.
  2. Your list of collateral or assets.


First they’ll check your credit and financial history. If you have a history of paying all your bills on time, not owing any money to anyone, you have a steady source of income, and so on… then they’ll consider you an ideal candidate for a loan.


But if your credit score is subprime and you lack positive financial history, they’ll move on to any collateral or assets that you may own. These possessions hold value, so they can be put up against the loan as a form of collateral insurance that the creditor will get their money back.


Unsecured Debt


Most forms of unsecured debt come from the first of the two types of creditworthiness indicators: credit score and financial history. The loan is based solely on your promise that you’ll pay on time. I.e. it’s not secured by any physical possessions, assets, or collateral, therefore… ‘unsecured.’


Unsecured debt is more likely to feature higher interest rates than secured debt, because the credit-provider really only has your word. That makes it a riskier loan for them to give out, so they compensate that risk with a higher rate of interest.


Secured Debt


Since secured debt requires you to provide the credit-provider with some form of collateral, the interest rates are usually lower because the bank has a physical and more tangible guarantee that you’ll pay them back. One example of a secured loan is a mortgage. Your house is the collateral in that example.


That’s why banks require the lender to get home insurance in order to apply for a mortgage; they want you to protect their asset in case you default on the loan and they need to sell your house to recoup the money that you lost them.


Secured debts can be used with cars, property, businesses, and other types of assets and resources that the creditor approves as having good equity.


The Women of 2016’s ‘30 Under 30’ From European Finance

The Women of 2016’s ‘30 Under 30’ From European Finance

finance expert

Out of the 30 financial experts that were selected for Europe’s 30 Under 30, there were 8 women that made the cut. In a male-dominated field where women have more obstacles to overcome in order to be taken seriously, these eight women have displayed persistence, intelligence, grit, and indomitable innovativeness.


In 2017, let’s hope there are more women chosen to be featured in the 30 Under 30. Until then, let’s celebrate these top-dogs in Europe’s financial arena:



  • Ophelia Brown


Age: 29

United Kingdom

Principal, Index Ventures

A year ago, when Brown was the lead investor of her firm, a Spanish tech startup decided to raise their Series A round. After the startup refused to negotiate with her, Brown sat outside their offices in Barcelona for two weeks. Her dedication won her the deal. Brown has also sourced Index’s investments in Osper, Big Health and Marvel.

2. Laura-Maria Baz

Age: 26

United Kingdom

Investment Professional, Vitol Group

Baz had previously worked out of the Russian, Korean, and Abu Dhabi offices of Citigroup. Now Baz is an investor at Vitol Group, the commodities megalith. Baz more specifically deals with multi-billion dollar energy portfolios.

3. Stefania Boroli

Age: 29


Investment Manager, IDEA Capital Funds SGR

Boroli has a history of creating her own opportunities. She is a cofounder of Mentors4u, which is a non-profit mentoring program for undergraduate college students that want to get into finance. Boroli was formerly a consultant at Bain. She then helped to create “Idea Taste of Italy.” Focusing on the Italian food and wine sector, “Idea Taste of Italy” is a private equity fund where Boroli operates as an investment manager.  

4. Gamze Demirci

Age: 25


Analyst, Hasso Plattner Ventures

Before becoming an analyst for Hasso Plattner Ventures, Demirci worked with tech startups with Global Venture Development at Rocket Internet. As an analyst for Hasso Plattner Ventures, Demirci advises portfolio companies as well as performing due diligence.

5. Frances Houweling

Age: 29


Associate Director, IK Investment Partners

Renowned for her knack of finding the smartest investment bets, Houweling employs a tactic of wide focus to lock down the best in the industry. Vista and CIS Lines are two popular firms that Houweling had the foresight to invest in. Before becoming the Associate Director at IK Investment Partners, Houweling worked as an analyst with J.P. Morgan’s investment bank and fixed income divisions within the firm.

6. Lauren Hurwitz

Age: 29

United Kingdom

Business Manager – Europe, Middle East, Africa, Moelis & Company

Hurwitz has made a concerted effort to help other women in finance. She helped to launch the Global Women’s Leadership Forum, which hosts over a dozen events worldwide through her firm. Based in London, Hurwitz  handles operational and managerial oversight of the offices in the Moelis & Company’s EMEA region in her role as Business Manager.

7. Amy Kang

Age: 26

South Korea

Vice President, Bank of America

Kang assists large companies and firms to navigate their tax, currency, and legal risk through Bank of America in Merrill Lynch’s London offices at the young age of 26.

  1. Marta Krupinska

Age: 27


Co-founder, Azimo

Originally from Poland, Krupinska saw the need for an easier way to perform international money transfers after trying to send money home to her family. So she helped to found Azimo to fulfill that very need. Since then, Azimo has raised $30 million in Series A and B funding and is one of the fastest-growing fintech companies in Europe.

Merger Talks Intensify Between Large Cooperative Banks in Italy

Merger Talks Intensify Between Large Cooperative Banks in Italy

italian bank

The Banca Popolare di Milano is a small lender located in Italy, but it could be making some big changes in the near future. The bank is in talks to potentially merge with the Banco Popolare SC or UB Banca SpA. While no definitive answers have been given as to whether or not the merger will take place or as to all that the merger could mean for the companies involved, most are speculating that a merger will take place in the very near future and that it will mean major changes for everyone involved.

The most likely merger, at this point, appears to be between the Banca Popolare di Milano and SpA, which is Italy’s fifth largest lender when assets are factored in. The other potential partner in the deal, The Banco Popolare SC, is just ahead of it as the fourth largest lender by assets.

Recently, shares were rising among all three lenders, however, as everyone anxiously awaited the news of whether a merger would occur and tried to stake some kind of claim in the deal. They weren’t just waiting to see if a merger would happen, however; they were also waiting to see, if it did, which of the companies it would be between . Unfortunately, answers have been slow in coming, and everyone with a stake in the potential dealings is waiting with bated breath.

If a merger does occur, and it’s likely that it will, the partnership could be a huge and business-changing deal for the companies involved and all who are invested in them. It would also mark the realization of a recently passed Italian law that changed the governance rules as they relate to banks.

Under the new law, shareholders of some banks are allowed to agree upon and make big decisions, regardless of how small or distant their stakes in the banks may be. This law only applies to moderate banks, with $8.7 or less in assets, and the aforementioned Banca Popolare di Milano fits the bill. As such, those involved in this deal have until July of 016 to adjust principle amounts, vote, and make a final decision.

As one might expect, the new law is affecting other banks as well. Now, all moderate banks, not just the ones involved in this deal, are more subject to takeovers, though many banks, including the three involved, have planned defensive mergers to protect themselves. Thus, a merger between these three banks or between just two of them could serve quite well as a protective mechanism.

In fact, no matter what ultimately happens, one can assume that it will definitely be what the banks involved consider to be in their best interest when it comes to protecting themselves. There is a lot of speculation about what will happen and what should happen, as well as a lot of disagreement about what the best course of action is for all involved. No matter what does happen, however, it’s practically guaranteed that this merger will set an example for other banks in the same position to follow, meaning that this deal won’t just affect these three banks, but all banks who have become more vulnerable as a result of the new law.


5 Key Business Tips that Every Veteran Should Know

5 Key Business Tips that Every Veteran Should Know


Starting a business may look easy, but it is not easy to predict whether you will succeed or not. The key is to put your special skills and do your best. Take for instance, the veterans and training they receive in the military, which help them hone up their entrepreneurial skills and lead their small businesses instantly to a successful path. Though these veterans do have the entrepreneurial skillset and mindset to get succeeded as business owners, it is not essential all of them can have the same traits, and know about everything.


However, in the article below, there are a few tips that every veteran needs to know:-


1)  Plan well


There are many factors involved in bringing a business together. Business elements such as finances, resources, risks, liabilities and other possibilities are some of the things that you should consider at length before actually starting your business. Efficient business planning is essential for a successful long-term business flourishing. You need to think objectively about your business goals, and accordingly plan, develop and sketch out strategies for the future. Creating a roadmap that will lead you towards success make you feel a step closer to your objectives.


2)  Get verified


Being verified as a veteran business person will open many doors for you. Government agencies and many other similar corporations are bound to buy a certain percentage of their goods and services from veteran-owned ventures. Therefore, make sure you are verified as a veteran-owned business since it may be the stepping stone towards your ultimate success.


3)  Stick to one niche

While you may think that expanding your products and services will help you generate more sales, you are wrong. Businesses, no matter how solid they may be, tend to face trouble during their attempt of broadening their offerings to reach a greater target market. Specialize in the kind of product or service that you are best at, and deliver it to your customers qualitatively. This is a better strategy that is bound to increase your profitability and even reduce your marketing expenses.


4)  Marketing tactics


Work effectively in searching for marketing tactics that are both, cost-effective and highly profitable in nature. It is important that you stay firm and focused in order to ensure a stable future for your business. Discovering innovative ways to reach out to your target audience is one of the most important steps towards the durability of your business in the market. Since digital platforms are popular among the mass, making use of the same will be a wise decision.


5)  Choose the right team


What will help transform your vision into reality are the skills and capabilities of your fellow employees. It is important that you find and select employees who are skilled enough, and have the capabilities to deliver the products or services within the deadline.


Do not rush while hiring employees for your organization. It is, after all, a big commitment for your business. Moreover, you must not neglect investing in their training and development. The better training you provide them the better results you will get.


Thus, make the best and most efficient use of your business knowledge. Not only will it lead you towards a path of success, but also ensures a long-lasting life for the same.


Credit Card Tips For Building Responsible Credit

Credit Card Tips For Building Responsible Credit

building resonsible credit

People who are intelligent with their finances realize that credit cards are an important tool in being financially responsible. Credit cards are a good thing to use for daily purchases. If you are also responsible with your credit card you’ll be gaining an excellent credit score with every purchase made. Here are some major credit card tips that will assist everyone in becoming more responsible and building up an excellent score.

Balance Alerts & Analysis

By paying for everything on credit it allows for you to consolidate finances and paying off bills on a month to month basis. Keeping a watch on credit card balances will be helpful with alerts. Spending limits can be made and when they go over certain limits

Keeping a watch on how much you’re spending with your credit card is easier than ever before. Most issuers allow you to set up balance alerts so that you’ll receive a text and an email whenever your total spending hits a certain threshold that you’ve set.

Another helpful service that is offered is receiving a notice when credit utilization ratios begin approaching the 30% mark. This way you’ll be able to pay before it can affect the credit score.

Spending analysis tools are under utilized tools that all major credit card accounts usually offer online in some sort of graph form. These are able to track daily, weekly, and monthly spending. Also in the long run it can show spending over the years. This analysis allows a breakdown of spending like food, travel, and merchandise and essentially anything else that can be broken down into different categories for spending. By using these tools they can utilize ways to better manage money and increase the credit score. They’re also beneficial in setting up a budget that can be followed.  Make sure to look for this tool next time when logging into the online platform as it can help dig deeper into finances and spending habits.

Mid Cycle Payments

As all credit card users know that there is monthly billing cycles. Often time’s people don’t realize that they can benefit their score by paying a few times a month or paying off the card in full on a month to month basis. Once a month the credit card issuer sends a report about the account to three different credit bureaus. This includes a variety of factors including your balance, utilization and any missed payments and other factors.

There are times that when the bill has been paid it has yet to be reported. If you’re in the habit of charging a lot per month, paying mid cycle can be a way to mitigate this and stay under the recommended 30% utilization rate. Using credit responsibly is a great tool and with these tips can help launch a responsible way to use credit. These are just simple tips to use with credit, but in the long run can be of immense help to credit users.

Combining Finances Made Easy

Combining Finances Made Easy

So it’s official you have tied the knot! Well first thing is first congratulations! Now that the honeymoon is over you need to get serious. Combining finances can be a complicated experience. Don’t let it be. Hopefully you and your spouse have discussed some finances prior to walking down the aisle but if not no harm no foul. Simply discuss it now.


Discuss Your Finances

Share with your spouse where you stand financially and have them do the same. As financial stress is one of the leading causes of divorce be honest and upfront with one another. Knowing where you start financially can allow you to set realistic goals. Whether your financial status is good or bad it should not matter in a marriage but it is important to be open to talk about it. Tackling your debt together and being able to discuss everything will help aide in a successful marriage. Once you are married your finances are not yours they become ours and they includes debt. Remember that when before saying I do.Make a plan and decision of either both of you sitting down and paying bills or if one of you is going to do that. Keep communication open either way. If one of your becomes the primary payer of bills let the other know the current financial status of you two so no is in the dark. Don’t be another statistic and let financial issues get in the way of why you married in the first place.


Set Goals and A Budget

Now that you have been open and honest with each other regarding each of your finances. Depending on where you stand financially as a couple. Whether you are in debt or gaining more income as a couple you start with combined finances. For all of the major expenses you will be using joint credit and that determines a lot. Credit is used for everything these days. As a couple set financial goals. Goals that should be set in place like in five years you want to be debt free or want to purchase your first home together. Set goals for when you retire,  when and what age you want to retire. Once your goals are set in place you need to create a budgeting plan to accomplish your goals. Create a budget plan and stick to it. One of the best ways is using an app on your smart device that allows you to combine both you and your spouse’s financial information all on in one convenient spot. You can even use these apps to set goals and they usually recommend things to help you achieve your goals. It is usually much easier to combine bank accounts and it makes it easier to keep track of all finances instead of having a joint account and then each separate accounts.


Combining your finances won’t be that hard. Communication is key. Communicate, stick to the plan, and when wanting to purchase any large expense let your significant other know and discuss whether or not it is a good investment.