Insights

Credit portfolio managers face spiking interest rates and rising defaults, and contagion from one sector to another is a major concern. Consensus credit aggregates show how credit risk correlations between sectors are changing.

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.