In a recent speech, former Fed Chairman Paul Volcker recounted his extreme dismay upon learning some years ago that one of his grandchildren aspired to a career in financial engineering. I think that by now, the term has rightly come to be associated with a lot of the chicanery that occurred in the financial world over the past half-decade or so.
Now that credit is no longer freely flowing, however, the firm has far less flexibility. Frontline has recently put more vessels on long-term time charter, and I think the move to secure adequate cash flows is more about self-preservation than opportunism. After all, this market peaked about six months ago.
Of course, these things are always hard to tease out. At first it appeared that DryShips
That's the thing with these market-timing shipping operators. It's hard to tell exactly what the motivating factors are behind operating adjustments, and whether explanations are really just justifications. I don't even suggest that this is intentional -- hindsight bias is pervasive in human psychology.
Conditions change so fast that firms like Frontline and Tsakos Energy Navigation