Category: Insights

The economic damage of the pandemic is far from over, but some sectors are showing the leading indicators of their future recovery.

Get unique additional factor model performance by integrating IHS Markit securities lending data with Credit Benchmark consensus credit risk data. Independent research shows that Credit

The Oil & Gas sector was in trouble even before the first Covid lockdown, and it was one of the worst credit performers in 2020. Recent credit agency downgrades for some of the US majors have brought these ratings into alignment with the more conservative bank consensus view.

How do the major players in the GameStop short squeeze compare from a credit perspective? While some firms have multiple agency ratings, many are mainly unrated. Consensus data can fill some key gaps in risk management for all players in this complex network.

Government support for UK businesses is due to end in early 2021, leaving many at-risk companies in debt. A significant increase in default rates may be observed as credit becomes less available. New research from Credit Benchmark shows that UK corporates have a ~20% higher chance of defaulting in 2021 compared to a year ago, suggesting that 1 in 150 companies will default this year.

As supply chains dissolve and reform in response to COVID, combining supply chain network views on Bloomberg with consensus credit risk data can give a more complete picture of the resilience or vulnerability of different sectors and companies.

CDS prices are often cited as a proxy for solvency risk. New research shows some large variations between CDS prices and consensus credit risk data for GSIBs.

Co-working fills an obvious gap in the office property market, and the sector has seen exponential growth since its inception in 2005. But with a global pandemic and a possibly permanent downshift in demand for city center office space, can the co-working model survive? New consensus data shows that co-working credit quality has been one of the hardest hit segments in the office property space.

An effective COVID vaccine may be in sight, and some sectors could see major improvements in their credit quality after the major financial damage caused by the virus. But which sectors have held up well, and which have been heading towards serious trouble?

Financials may be heading for more credit strain as the Real Estate sector transmits problems on Main Street into problems for Wall Street.