{"id":3827,"date":"2015-01-01T09:58:18","date_gmt":"2015-01-01T14:58:18","guid":{"rendered":"http:\/\/olduvai.ca\/?p=3827"},"modified":"2015-01-01T09:58:18","modified_gmt":"2015-01-01T14:58:18","slug":"oil-bust-contagion-hits-hedge-funds-supplier-layoffs-begin-wolf-street","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=3827","title":{"rendered":"Oil-Bust Contagion Hits Hedge Funds, Supplier Layoffs Begin | Wolf Street"},"content":{"rendered":"

Oil-Bust Contagion Hits Hedge Funds, Supplier Layoffs Begin | Wolf Street<\/a>.<\/p>\n

Toxic mix of financial engineering and oil-price collapse.<\/span><\/strong><\/h1>\n

It started a few weeks ago. I\u2019d hear from guys here or there in the oil patch who\u2019d just been laid off. That contrasts with the prior anecdotes of hiring binges. A trickle of anecdotal evidence that something has changed, but not enough to pin down credible trends. Then suddenly, something happens \u2013 and it turns out that the trends might be worse and might be developing faster than imagined.<\/p>\n

Afterhours Monday, between the holidays during a shortened workweek when everyone was supposed be on vacation and when no one was supposed to pay attention, Civeo, which provides workforce accommodations for oil fields and mines in Canada, Australia, and the US announced its Initial 2015 Operating Guidance. And what it said about the oil industry was a doozie.<\/p>\n

Civeo is one of the many peculiar creations of Wall Street\u2019s financial engineering shops. When it was still a unit of Oil States International, David Einhorn\u2019s hedge fund Greenlight Capital and Barry Rosenstein\u2019s Jana Partners clamored vociferously for a spinoff, because spinoffs were the new hot thing to make a quick buck. So by early June, Civeo was spun off. It had over 4,000 employees and housed over 20,000 \u201cguests,\u201d as it said on its website. The price of oil was above $100 a barrel. It was the absolute peak of the junk-bond bubble, particularly the energy junk-bond and IPO bubble. Nothing could go wrong.<\/p>\n

<\/p>\n

<\/a><\/a>…click on the above link to read the rest of the article…<\/span><\/span><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Oil-Bust Contagion Hits Hedge Funds, Supplier Layoffs Begin | Wolf Street. Toxic mix of financial engineering and oil-price collapse. It started a few weeks ago. I\u2019d hear from guys here or there in the oil patch who\u2019d just been laid off. That contrasts with the prior anecdotes of hiring binges. A trickle of anecdotal evidence […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[2296,2297,1775,860],"class_list":["post-3827","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-civeo","tag-hedge-funds","tag-oil-price-collapse","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/3827","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3827"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/3827\/revisions"}],"predecessor-version":[{"id":3828,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/3827\/revisions\/3828"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3827"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3827"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3827"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}