Insights

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.

Leveraged Loans continue to divide investor opinion. Values declined as part of the High Yield rout earlier this year, but they have been slower to recover. Consensus credit trends suggest that some of the bbb and bbb- CLO issuers may be in for a bumpy ride.

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.

How far do equity market movements reflect credit developments during the COVID crisis?