Reply from Phoenix Energy One, LLCFeb 23, 2024
Hi Norman, the FDIC protects depositors of insured banks and we are not a bank. To add, “Junk bond” is a term coined in the Mike Milken era to denote the credit ratings of listed bonds that fall below CCC. We are an alternative investment and not technically in the same asset class as junk bonds. All investments carry a measure of risk. Our disclosures are very clear and can be found in our investment documentation. Now that our lawyers are happy, we’ll say this: to date, we have always been able to service our monthly interest payments and to repay the principle owed to our investors. Further, the company tries to mitigate risk by doing the following:
1. Hedging our Oil and Gas portfolio to withstand market fluctuations.
2. Employing a rigorous underwriting process that ensures that we are investing in profitable assets.
3. Maintaining an estimated reserve value that is well in excess of the liabilities carried on our balance sheet.
It’s important to note that, as with ANY investment, past performance is not indicative of future results. If you would like to learn more about our portfolio, investment strategy, and how we structure our business, we’d love to have you join one of our in-depth webinars.
Regarding your concern about the potential failure of our business, we assure you that we take risk management seriously. While no investment is entirely without risk, we have contingency plans in place to protect our investors' interests to the best of our ability. Furthermore, as a family-owned business, we have a vested interest in maintaining our reputation and ensuring the success of our endeavors. Our commitment to transparency and integrity remains unwavering.
We understand the importance of trust and accountability in the investment industry, and we strive to uphold these values in every aspect of our business.
If you have any further questions or would like to discuss your concerns in more detail, our Capital Markets team would be more than happy to discuss further with you. You can give us a by call at (303) 376-9778, press 1, and then press 2. Thank you
