Russia is one of the world’s largest gold producers, and sanctions and inflation fears have seen the price of gold and other precious metals spike in the past month. Outside of Russia, many suppliers may have their eureka moment as prices continue to rise. This report compares credit consensus ratings to equity prices for some of the largest global mining companies.
Market risk indicators are increasingly important amid global tensions and interest rate volatility. Consensus credit data offers a view beyond the VIX index and credit spreads – and recent data suggests financial institutions see the current problems translating into higher default rates.
January 2022 has been a difficult month for investors and looming Fed rate hikes mean more “Risk Off” days ahead. The hunt for yield continues, and with equity dividends at a high, consensus credit data can identify which industries are also underpinned by safe credit.
There are fears that investors in the broader high yield space are not being properly compensated for the risks. Though recent private equity investments have focused on firms that have weathered the pandemic with stable revenues and strong cash flows, which could boost the average credit quality of leveraged loan assets, the latest consensus credit data shows a more mixed picture.
Air travel is currently running at about 50% of its pre-pandemic peak and the sector still faces uncertainty from new virus variants, patchy tourism traffic and a shift in business travel norms. While many Global Airlines are unrated by traditional agencies, consensus credit risk data shows that 80% of the sector is below investment grade – but some remain good credit risks.
Credit Benchmark CCI data on the credit quality of US, UK, and EU Industrial companies has been cited by John Authers in his Bloomberg ‘Points of Return’ column.
Over the past 12 months, equity markets have steadily recovered from their panic-stricken lows in Q1 2020. Consensus credit has also adjusted, but changes in estimates of credit risk have been more measured and sometimes at odds with equity markets in particular.
With lockdowns easing and vaccinations picking up pace, a major slug of pent-up cash is likely to make its way into the hard-hit leisure sector. Hotels have suffered, but relief is on the horizon – which major names have struggled the most, and which sit in a stronger position?
Get unique additional factor model performance by integrating IHS Markit securities lending data with Credit Benchmark consensus credit risk data. Independent research shows that Credit
CDS prices are often cited as a proxy for solvency risk. New research shows some large variations between CDS prices and consensus credit risk data for GSIBs.
Credit Benchmark brings together internal credit risk views from over 40 leading global financial institutions. The contributions are anonymized, aggregated, and published in the form of consensus ratings and aggregate analytics to provide an independent, real-world perspective of credit risk. Risk and investment professionals at banks, insurance companies, asset managers and other financial firms use the data for insights into the unrated, monitoring and alerting within their portfolios, benchmarking, assessing and analyzing trends, and fulfilling regulatory requirements and capital.
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