November Credit Update: Consensus Financial Downgrades Outweigh Upgrades
Credit Benchmark has published the latest monthly credit consensus data (from October 2019) based on contributions from 40+ financial institutions, covering 50,000 separate legal entities. The monthly upgrades and downgrades overview is now based on data adjusted for changes in contributor mix. Monthly consensus upgrades and downgrades: Last month showed improvements across 357 obligors and […]
Leveraged Loans Insight: Diverging Credit Quality Between Public and Private Equity Owned Firms
The value of leveraged loans outstanding has more than doubled in recent years, from $600bn in 2012 to $1.4tn in 2018. This jump in issuance indicates that demand by investors for leveraged loans has been strong despite the fact that a significant number of higher risk “covenant-lite” loans have featured in a number of leveraged […]
Risk.net: US Slowdown Starts to Bite for High Yield
US economic growth has slowed down during 2019, coming in at 1.9% in the third quarter, compared with 3.1% in the first quarter. The decline is starting to be reflected in corporate credit quality as well. The creditworthiness of US high-yield corporates has declined by 3% since the start of 2019, while investment-grade corporates are […]
Leisure and Recreation Industries Seem a Sure Bet During Economic Slowdown
Download PDF The global economy is in “a synchronized slowdown”, according to the IMF’s latest World Economic Outlook report. Global growth for 2019 is expected to drop to 3%, similar to the rate seen during the global financial crisis. Trade in particular is suffering as a result of the prolonged US-China tariff war. Not all […]
October Credit Update: Consensus Downgrades Outweigh Upgrades
Download PDF Credit Benchmark has published the latest monthly credit consensus data (from September 2019) based on contributions from 40+ financial institutions, covering 50,000 separate legal entities. The monthly upgrades and downgrades overview is now based on data adjusted for changes in contributor mix. Monthly consensus upgrades and downgrades: Last month showed improvements across 321 […]
The IMF Financial Stability Report, Global Debt Trends, and the Rise of Leveraged Loans
Download PDF The International Monetary Fund (IMF) recently published their latest Global Financial Stability Report.[1] According to the report, Corporate Debt Growth between 2018 and 2019 has been mainly driven by loans rather than bonds, especially in the US, Germany and Japan. Figure 1 compares recent growth in Corporate debt with GDP growth across some […]
Indian Financials Bear the Weight of a Fragile Economy
India is the fifth-largest economy in the world (close to $3trn), but with a population of 1.3bn and an average wage of just $2,100 p.a. it ranks 142nd on GDP per capita.
Risk.net: Sustainable Companies are Better Credit Risks
The link between sustainable business practices and financial performance is hotly debated. There is plenty of anecdotal evidence of companies with poor environmental, social and governance (ESG) records – Volkswagen and PG&E, for example – coming a cropper. But establishing a clear statistical correlation between ESG scores and stock returns has proven difficult. In bond […]
September Credit Update: Consensus Downgrades Outweigh Upgrades
Download PDF Credit Benchmark has published the latest monthly credit consensus data (from August 2019) based on contributions from 40+ financial institutions, covering 50,000 separate legal entities. The monthly upgrades and downgrades overview is now based on data adjusted for changes in contributor mix. Monthly consensus upgrades and downgrades: Last month showed improvements across 324 […]
US Auto Sales Stalling After Labor Day Acceleration
According to the JD Power LMC Automotive Forecast for September, US auto sales are expected to decline 13.3% year on year following record sales results in August, when retail sales rose 6.2%. In addition to the fact that Labor Day sales were counted in August’s report instead of September’s, the decline is likely due to […]
