With the crash in crude oil prices over the past 18 months, US banks that were once enthusiastic backers of North American oil producers are faced with mounting losses on bad energy loans. As defaults in the exploration and production (E&P) sector rise, lending practices have come under scrutiny, and some critics are charging that credit was far too loose during the go-go days of the shale boom.
"This was a classic bubble," says Adam Hoffman, founder of Wooded Park Strategies, an energy risk man
The week on Risk.net, October 6-12, 2017Receive this by email
- SGX, HKEX expect to be among first wave of Mifid II equivalence
- Quantile, TriOptima face off in cleared swaps compression battle
- Leaked EU doc could shield legacy swaps from clearing grab
- ABS set for revival under US Treasury’s liquidity buffer plans
- Quants stymied by lack of alternative risk premia flows data