Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Financial Planning > College Planning > Student Loan Debt

Goldman Says 40% of Its Lending to Oil and Gas Firms Is Junk

By Dakin Campbell

X
Your article was successfully shared with the contacts you provided.

Goldman Sachs Group Inc. said about 40% of its loans and lending commitments to oil and gas companies are to junk-rated firms.

The figure, which counts both loans made and future promises to lend, accounted for $4.2 billion of a total $10.6 billion as of the end of December, the New York-based bank said Monday in its annual regulatory filing. Goldman Sachs has $1.5 billion in loans to energy companies rated below investment grade and $2.7 billion in unfunded commitments.

The total exposure jumps $1.9 billion counting derivatives and other receivables, which were “primarily” to investment- grade firms, Goldman Sachs said.

Concerns about banks’ energy loans have helped spur share declines for lenders after the price of oil fell 42% in the past 12 months through Friday. The Standard & Poor’s 500 Financials Index slumped 13% in the same period.

Goldman Sachs’s total is below some of its biggest competitors. Citigroup Inc.’s funded and unfunded commitments amounted to $58 billion, analysts at Susquehanna Financial Group LLP wrote in a note last week. Most of Wells Fargo & Co.’s $17 billion in outstanding energy loans is for companies that aren’t investment grade, Chief Financial Officer John Shrewsberry said last month.

— Check out Energy Crash: Is It Time for Investors to Jump In? on ThinkAdvisor.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.