Risk.Net: June Credit Data Review
“Prospects for the diesel car do not look good. Attempts to rehabilitate the fuel continue, but appear to be running out of time. New emissions tests reportedly show that even new diesel vehicles are pumping out too much nitrogen oxide, and a court in Germany – Europe’s largest car market – recently ruled that cities […]
Credit Quality of Sub-Saharan Sovereigns Affected by High Risk of Debt Distress
The IMF Regional Economic Outlook report from April 2018* discusses the recent increase in debt levels across Sub-Saharan African countries. This growth is partly in response to very favourable borrowing terms available to frontier markets in the current low interest rate / low credit spread environment. The issuance of foreign currency debt by these countries […]
May Credit Update: Consensus Upgrades Outnumber Downgrades
Credit Benchmark has published the latest monthly credit consensus data (from April 2018), with 24 contributor banks. The set of bank-sourced credit views (CBCs*) now covers almost 19,500 separate legal entities. Monthly consensus upgrades and downgrades: 556 obligors improved their credit standing by at least one notch. 375 obligors deteriorated. 97 moved more than one […]
Forest Products: Credit Quality Improves Due To Plastics Backlash
Over the past year, the iShares Global Timber & Forestry ETF has risen by more than 35%, with the S&P 500 flat over the same period. This surge in investor interest in a previously moribund sector is being driven by a number of factors. These are discussed in detail in a McKinsey podcast from December […]
Benchmark Risk and Portfolio Analytics
Credit Portfolio Management and Bank-Sourced Benchmarks May 2018Benchmark Risk and Portfolio Analytics Overview This paper demonstrates the role of bank-sourced benchmarks and indices in credit portfolio management (“CPM”). All banks aim for optimal risk-adjusted returns across their book of business, but there is an increasing focus on credit portfolio diversification in comparison with their competitors. […]
US Sanctions On Iran Likely To Hit Credit Rating, Could Benefit Saudi Arabia
The US decision to withdraw from the current nuclear deal with Iran is a new factor in the complex political re-alignment occurring across the Middle East. Overall US policy in the region increasingly favours Israel, indirectly boosting the electoral performance of populist Shia candidates in Lebanon and Iraq. The decision has also highlighted the risk […]
Risk.Net: May Credit Data Review
“A burgeoning area of research in the past two decades has been the relationship between gender balance and corporate performance. Studies have variously found that companies with more women in their senior management ranks outperform – but only if the firm’s strategy is focused on innovation; that replacing a senior man with a senior woman […]
April Credit Update: Consensus Downgrades Outnumber Upgrades In Corporates And Financials
Credit Benchmark has published the latest monthly credit consensus data (from March 2018), with 22 contributor banks. The set of bank-sourced credit views (CBCs*) has increased by 25%, and now covers almost 19,000 separate legal entities. Monthly consensus upgrades and downgrades (including Funds): 885 obligors improved their credit standing by at least one notch. 764 […]
Tobacco Stocks May Be Volatile But Remain Good Credit Risks
Tobacco stocks dropped sharply last week after Philip Morris reported declining sales volumes and disappointing results from recent investments in “healthier” nicotine delivery systems. Big Tobacco is at a crossroads, and recent share price drops show how nervous investors are about the outlook for this sector. But Tobacco still has some advantages: profit margins benefit […]
Big Tech Could See Credit Premium Eroded if Regulation Bites
Big Tech is having a rough time in 2018. After providing about a quarter of the 2017 stock market gains, the recent #techlash against Silicon Valley has seen Senators grilling Facebook CEO Zuckerberg, and President Trump calling out Amazon for alleged abuse of the US Postal Service. The privacy and anti-trust issues raised have also […]
