Energy Exposure Shouldn't Tank Most Banks
We think the potential losses are manageable for most of the U.S., Canadian, and European banks we cover.
After rounding up first-quarter earnings updates, we remain convinced that exposure to energy remains manageable for most U.S., Canadian, and European banks. We see positive indicators for investors on four fronts.
First is the strength of underlying markets. The price of Brent crude oil has risen to nearly $50 per barrel from below $30 in early January, alleviating pressure on oil companies and reducing the likelihood of default.
Erin Davis does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.