The latest Central Counterparty Clearing House (CCP) monitor produced by Credit Benchmark shows further improvements in credit quality in North American and European CCPs. However, as the monitor demonstrates, CCP member risk does not always reflect that of the CCP itself.
Global Tobacco credit quality has weakened by 3.4% month-on-month. The introduction of stricter tobacco measures globally, as well as COVID-19, all contribute to this change.
This whitepaper from Credit Benchmark illustrates the global credit trends in the second quarter of 2022. Widening credit spreads show a major shift to a “risk-off” mindset, as supply shocks and rate hikes show no sign of abating. Corporate default rates are likely to spike, and across sectors correlations between default risk are changing. This whitepaper tracks these shifts across many otherwise unrated countries/sectors, as well as illustrating other global trends in Q2 2022.
The 2022 technology stock meltdown brought widespread financial damage. Markets are repricing the new reality of geopolitical tension, inflation and scarce money. But has the selloff brought opportunities?
A growing list of countries have already seen Sovereign ratings slide in the past two years due to COVID costs; some now face a real risk of outright default as the war in Ukraine drives food, fertilizer and energy prices higher.
Consumers are focusing on essential purchases and spending less time at home, and UK and EU broadline retailers are feeling the squeeze. Both groups show recent deterioration against a global trend of improvement.
Semiconductor supplies have not yet recovered from COVID disruption. This has caused problems for many industries, but the impact is becoming acute for manufacturers of automobiles and parts, as well as online car dealers and car rental companies.
For investors in Risk Sharing products, transparency is key. This report uses Credit Consensus Ratings to compare a single bank’s view of a typical risk sharing portfolio with the broader bank peer group view of the same portfolios. This unique dataset can be used for industry trend tracking, portfolio analytics, and single name assessments.
Shifting energy sector dynamics have been a bonanza for US oil and gas companies, with prices spiking and share prices following suit. Strong share performance does not always correlate with strong credit quality, however. This analysis shows the relationship between Credit Consensus Ratings and US energy sector equity price changes in 2022.
With tighter global monetary policy already hitting heavily indebted households and firms, could default rates also reach record levels? This insight looks at the relationship between the Fed Effective rate and US Business Loan Delinquencies.
Credit Benchmark brings together internal credit risk views from over 40 leading global financial institutions. The contributions are anonymized, aggregated, and published in the form of consensus ratings and aggregate analytics to provide an independent, real-world perspective of credit risk. Risk and investment professionals at banks, insurance companies, asset managers and other financial firms use the data for insights into the unrated, monitoring and alerting within their portfolios, benchmarking, assessing and analyzing trends, and fulfilling regulatory requirements and capital.
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