investment bankers never learn

http://www.bloomberg.com/news/articles/2015-09-14/pimco-fide…

Can BOFI profit by following different lending rules than investment bankers
Who would be stupid enough to lend money to an inefficient company dependent on extremely high oil prices in a part of the well known for corruption, using unproved technology to tap some very deep offshore oil through unstable salt? For 100 years!!
Should any of the below surprise anyone?

Pacific Investment Management Co., Fidelity Management & Research Co. and Capital Group Inc. –

last week, when the securities sank to a record-low 69.5 cents on the dollar after Petrobras, as the Brazilian company is known, had its credit rating cut to junk by Standard & Poor’s. The world’s most-indebted major oil producer was stripped of its investment grade by Moody’s Investors Service seven months earlier as a widening probe into alleged bribes paid to former executives at the state-controlled oil company caused it to delay reporting earnings.

If BOFI measures credit worthiness differently than the banks that bought these bonds, I say hooray.

The WWW was fill of bullish comments on Petrobras and sub salt deposits. Despite all the very obvious problems in making money from these formations. Only one big problem would have made them a economic flop, actually several happened. Predictably IMHO.

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