March Credit Update: Upgrades Outnumber Downgrades
Credit Benchmark has published the latest monthly credit consensus data (from February 2018), with 21 contributor banks now providing bank-sourced credit views (CBCs*) on almost 15,000 separate legal entities over the past 12 months. Monthly consensus upgrades and downgrades: 326 obligors improved their credit standing by at least one notch. 237 obligors deteriorated. 37 moved […]
Credit Diversity: Latest Reports from the Banking Perspectives journal
The US Small Business Administration regularly report that small and medium sized enterprises – especially new companies – are responsible for the majority of US employment growth. This sector needs creative access to capital, including debt, and access to capital is crucial for any modern, healthy economy. With a growing global entrepreneurial culture, investors and […]
Australian Mining Companies: Credit Steadily Improves
The past few years have been volatile for the global mining industry. Yields are declining as existing ore bodies are worked out, which is constraining supply. At the same time, battery-driven demand for “tech metals” is set to accelerate due to the wider global adoption of electric vehicles, solar cells and mobile phones. The changing […]
UK Retail Credit Trends Highlight Broad Weakness
Recent UK sales data shows continued weakness. Rising costs and weak demand has led some chains to consider closing stores (Debenhams, New Look) while others have fallen into administration (Toys R Us, Maplin). In a newly published report, Credit Benchmark shows that these trends have been well anticipated by the credit analysts at some of […]
Tariffs: US/EU Credit Distribution
The US has announced measures to protect the Steel and Aluminium sectors in the US. If implemented, the policy will impose tariffs of 25% (Steel) and 10% (Aluminium) on imports into the US, without exceptions. This is good news for the domestic metal producers, but potentially bad news for US manufacturers who are heavy importers […]
February Credit Update: Upgrades and Downgrades are Balanced
Credit Benchmark has published the latest monthly credit consensus data (from January 2018), with 20 contributor banks now providing bank-sourced credit views (CBCs*) on almost 14,500 separate legal entities over the past 12 months. Monthly consensus upgrades and downgrades: 265 obligors improved their credit standing by at least one notch. 254 obligors deteriorated. 63 moved […]
Winter Olympics: The Credit Factor
Is there any relationship between credit quality and sporting performance? Previous research by Credit Benchmark has shown a possible link using data from the 2016 Summer Olympics. Higher credit ratings are typically associated with mature economies, consistent growth, low inflation and a sound fiscal position; it seems likely that countries with high GDP per capita […]
Risk.Net: February Credit Data Review
“Cyril Ramaphosa has a lot on his plate. The new South African president succeeded Jacob Zuma on February 15, after allegations of corruption triggered his predecessor’s resignation, and will now have to grapple with the Zuma legacy, severe and spreading water shortages, and entrenched inequality.” In this series of monthly articles from Risk.net, David Carruthers, […]
The Dow’s Wall of Credit Worry Has Topped Out
Bull markets are said to “Climb a Wall of Worry” – and in 2017 the Dow Jones did just that. Despite a new President, rising interest rates, tensions with N. Korea and impending changes at the Fed, the key US equity indices continued to climb. They ran into some volatility recently – just in time […]
Vienna Summit Highlights Cyber Risk, Climate Impact, IFRS9 issues and Tail Risk
The 11th Annual Banking and Credit Risk Summit in Vienna this week included discussions around IFRS9 implementation challenges, and how lessons learned in Europe can be applied to CECL solutions for US banking subsidiaries. Another key theme was the increasing prevalence of new sources of credit risk, such as Climate Change. Dr. Georg Musil from […]
