Business

COVID-19: Luigi Wewege discusses risks to the Global Banking System

Published

5 years ago

March 23, 2020

A well-known figure in private offshore banking shares his views with us on the potential impact of COVID-19 on the global banking system as well as current investor sentiment. Luigi Wewege, Senior Vice President and Head of Private Banking at Caye International Bank in Belize discussed the situation with reference to several scenarios that investors could and should anticipate.

Regarding liquidity and stress tests, Wewege says that “Overall, United States and European based banks have showed reasonable improvement since the last financial crisis around 2008 however Europeans in particular do remember what happened with bail-ins and bailouts so you do see a lot of investor concern with what the European Central Bank might do next.”

When asked about some of the biggest concerns facing investors, Luigi noted that “There has been huge inflows of capital into the USA during the Trump administration. But now, people are a bit concerned about how far FEMA measures will go. People who have put large portfolios in either the USA or Europe are rethinking whether their safe-haven decision was the correct one. The Fitch Ratings agency already warned that the Italian banking system may struggle to cope with the fallout of the Coronavirus – and yes, it was not in a particularly good shape even prior to this. You also have countries like Greece that risks sliding straight back into a deep recession. So overall, investors do feel uneasy about the EU and US right now.” He went on to explain the various indicators that were taken into consideration during February plus March 2020 and said “Bank shares in Europe and the United States saw a very sharp repricing and decline. Government bond yields are falling, with US corporate high yields shooting up. This all shows that investor confidence in the global financial system has been shaken.”

Elaborating more on the scenario in Europe, Wewege believes “With such a substantial socio-economic shock unfolding in front of us, the brightest of financial analysts find it hard to see how Banks in the most affected European countries can maintain good assets and earnings. If repayment of loans ceases in the case of many European families – toxic assets becomes a big risk to them very quickly.”

About IMF policies during these challenging times, Luigi says “In fairness, the International Monetary Fund acted quickly to help countries during the time of Ebola, but that was a much smaller issue than what we face today. We know that given the huge spike in uncertainty that some in the IMF are proposing that there is a consensus worldwide to have a common monetary policy – and that will hopefully prevent a scenario where some currencies end up being the losers in Black Swan events. Yet all these instruments have their limits and at some point, it will come right back to the question of liquidity. That’s precisely why so many middle income to HNWI’s have allocated a decent portion of their portfolios to offshore banks that do not face the same exposure and risk that European and USA based banks do.”

Wewege went on to explain common risks that each individual country may face in the immediate future and aftermath of COVID-19: “A reduction in revenue and productivity may affect many countries – it is already doing so with disrupted supply chains and right now more borders are shutting. Then we have crippled public health systems in Europe who will need to consume a lot of public funds/stimulus in order to continue. Then off course there is one word that scares just about every European country and US state: Tourism. It is an important sector that is showing early signs of major strain that will likely continue for many more months. All these risks add up and will cause great strain on the global economy for the duration of 2020 and possibly even into 2021.”

On the ongoing appeal for offshore banking, Luigi says “Investors from all over the world gained a lot of respect for jurisdictions, like ours in Belize, where our banks were largely untouched by the 2008 financial recession. And yes – they certainly remember what happened to some large banks in Europe and the USA at the time and thus feel the writing is on the wall, whether it is indeed the case or not. Although we cannot predict accurately what the state of the global banking system will hold especially in Western countries, we can see a clear shift towards diversification and the start of more deposit inflow at offshore financial institutions like ours in Belize.”

Sound off:

Some may argue that the Dodd-Frank law that was passed in 2010 rendered the United States a less of a risk today than it was around 2008 and doomsayers who closely watch the Italian, French and Greek economies may have a point that the worst is still to come. Ultimately, these are very challenging times and to some extent, unchartered territory for the global financial system dealing with the Coronavirus pandemic.

Business

13 Reasons Investors Are Watching Phoenix Energy’s Expansion in the Williston Basin

Published

5 days ago

April 23, 2025

Matthew Wiles

As energy security becomes a growing priority in the United States, companies focused on domestic oil production are gaining attention from investors. One such company is Phoenix Energy, an independent oil and gas company operating in the Williston Basin, a prolific oil-producing region spanning North Dakota and Montana.

Phoenix Energy has established itself as a key player in this sector, expanding its footprint while offering structured investment opportunities to accredited investors. Through Regulation D 506(c) corporate bonds, the company provides investment options with annual interest rates ranging from 9% to 13%.

Here are 13 reasons why Phoenix Energy is attracting investor interest in 2025:

1. U.S. energy production remains a strategic priority

The global energy landscape is evolving, with a renewed focus on domestic oil and gas production to enhance economic stability and reduce reliance on foreign energy sources. The Williston Basin, home to the Bakken and Three Forks formations, continues to play a critical role in meeting these demands. Phoenix Energy has established an operational footprint in the basin, where it is actively investing in development and production.

2. Investment opportunities with fixed annual interest rates

Phoenix Energy bonds offer accredited investors annual interest rates between 9% and 13% through Regulation D 506(c). These bonds help fund the company’s expansion in the Williston Basin, where it acquires and develops oil and gas assets.

3. Record-breaking drilling speeds in the Williston Basin

Phoenix Energy has made significant strides in drilling efficiency, ranking among the fastest drillers in the Bakken Formation as of late 2024. By reducing drilling times, the company aims to optimize operations and improve overall production performance.

4. Expansion of operational footprint

Since becoming an operator in September 2023, Phoenix Energy has grown rapidly. As of March 2025, the company has 53 wells drilled and 96 wells planned over the next 12 months.

5. Surpassing production expectations

Phoenix Energy’s oil production has steadily increased. By mid-2024, its cumulative production had exceeded 1.57 million barrels, outpacing its total output for 2023. The company projected an exit rate of nearly 20,000 barrels of oil equivalent per day by the end of March 2025.

6. High-net-worth investor offerings

For investors seeking alternative investments with higher-yield opportunities, Phoenix Energy offers the Adamantium bonds through Reg D 506(c), which provides corporate bonds with annual interest rates between 13% and 16%, with investment terms ranging from 5 to 11 years, and a minimum investment of $2 million.

7. Experienced team with industry-specific expertise

Phoenix Energy’s leadership and technical teams include professionals with decades of oil and gas experience, including backgrounds in drilling engineering, land acquisition, and reservoir analysis. This level of in-house expertise supports the company’s ability to evaluate acreage, manage operations, and execute its long-term development plans in the Williston Basin.

8. Focus on investor communication and understanding

Phoenix Energy prioritizes clear investor communication. The company hosts webinars and provides access to licensed professionals who walk investors through the business model and operations in the oil and gas sector. These efforts aim to help investors better understand how Phoenix Energy deploys capital across mineral acquisitions and operated wells.

9. Managing market risk through strategic planning

The energy sector is cyclical, and Phoenix Energy takes a structured approach to risk management. The company employs hedging strategies and asset-backed financing to help mitigate potential fluctuations in the oil market.

10. Commitment to compliance

Phoenix Energy conducts its bond offerings under the SEC’s Regulation D Rule 506(c) exemption. These offerings are made available exclusively to accredited investors and are facilitated through a registered broker-dealer to support adherence to federal securities laws. Investors can review applicable offering filings on the SEC’s EDGAR database.

11. Recognition for business practices

As of April 2025, Phoenix Energy maintains an A+ rating with the Better Business Bureau (BBB) and is a BBB-accredited business. The company has also earned strong ratings on investor review platforms such as Trustpilot and Google Reviews, where investors often highlight clear communication and transparency.

12. A family-founded business with a long-term vision

Led by CEO Adam Ferrari, Phoenix Energy operates as a family-founded business with a focus on long-term investment strategies. The company’s leadership emphasizes responsible growth and sustainable development in the Williston Basin.

13. Positioned for long-term growth in the oil sector

With U.S. energy demand projected to remain strong, Phoenix Energy is strategically positioned for continued expansion. The company’s focus on efficient drilling, financial discipline, and structured investment offerings aligns with its goal of building a resilient and growth-oriented business.

Final thoughts

For investors looking to gain exposure to the U.S. oil and gas sector, Phoenix Energy presents an opportunity to participate in a structured alternative investment backed by the company’s operational expansion in the Williston Basin.

Accredited investors interested in learning more can attend one of Phoenix Energy’s investor webinars, which are hosted daily throughout the week. These sessions provide insights into market trends, risk management strategies, and investment opportunities.

For more information, visit the Phoenix Energy website.

Phoenix Capital Group Holdings, LLC is now Phoenix Energy One, LLC, doing business as Phoenix Energy. The testimonials on review sites may not be representative of other investors not listed on the sites. The testimonials are no guarantee of future performance or success of the Company or a return on investment. Alternative investments are speculative, illiquid, and you may lose some or all of your investment. Securities are offered by Dalmore Group member FINRA/SIPC. Dalmore Group and Phoenix Energy are not affiliated. See full disclosures.

This article contains forward-looking statements based on our current expectations, assumptions, and beliefs about future events and market conditions. These statements, identifiable by terms such as “anticipate,” “believe,” “intend,” “may,” “expect,” “plan,” “should,” and similar expressions, involve risks and uncertainties that could cause actual results to differ materially. Factors that may impact these outcomes include changes in market conditions, regulatory developments, operational performance, and other risks described in our filings with the U.S. Securities and Exchange Commission. Forward-looking statements are not guarantees of future performance, and Phoenix Energy undertakes no obligation to update them except as required by law.