No Signs of a Soft Credit Landing for Airlines
Global airlines face a battle for their survival, and equity indexes reflect recent volatility. However, any temporary rallying in airline stocks is at odds with the relentless decline seen in credit risk consensus data.
Credit Risk Changes and Equity Performance During COVID
How far do equity market movements reflect credit developments during the COVID crisis?
The Tortoise and the Hare: Consensus Credit Estimates and Corporate Credit Spreads
After six months of market volatility, credit spreads have coincided with the much slower ascent of Consensus credit risk, suggesting the latter is a calmer indication of future credit market movement.
The Solvency Boundary
Consensus credit data suggests that in times of crisis, the “Solvency Boundary” between investment-grade and non-investment grade credits is more fluid than during non-crisis times. The implication for bond and equity investors is that in the current environment, not all BBB issues are the same.
Supply Chain Credit Risk in the Post-Covid19 World
The Covid19 crisis has exposed the risks in single, long and complex supply chains that are only as strong as their weakest link. Companies are moving quickly to multiple, short, simple and robust supply structures wherever possible. Some companies view their supply chain details as trade secrets, but a number of financial data platforms – such […]
Risk On or Off? : Credit Risk and Share Price Correlations
When equity markets turn down they will pivot towards companies with the highest credit quality. This analysis shows the relationship between equity market movements and credit risk for US corporates.
Luxury Goods: A Sector on the Edge
Download the full Luxury Goods Aggregate Analytics infographic below. The Luxury Goods sector has had phenomenal success over the past ten years. Growing global middle classes and readily available credit have paved the way for a social media-driven explosion of demand for high quality brands. Every major city now has at least one destination street […]
Risk.net: Coronavirus Takes Toll on Corporates
Monthly Credit Trends for Top 100 Fund Managers, Global Airlines & Airports, Australian Corporates, and Irish Corporates & Financials.
US Corporate Credit Migrations: c-category grows by 70%
The BBB cliff has been widely discussed and the growing number of recent “Fallen Angels” shows that a number of corporates are falling over the cliff edge. The chart below shows the recent pattern of US Corporate credit migration across the 7 main credit categories, for a sample of 2219 companies. US Corporate Credit Migrations, […]
Turbulent Equity Markets Mirror Rising Credit Risk
Equity markets have experienced near-record levels of volatility in the past few months and consensus credit risk estimates have also showed major changes recently. This analysis suggests that the link between credit risk and equity markets may be significant, especially in the current environment.
