The COVID-19 crisis could trigger a sudden and massive reassessment of corporate credit risk, extending beyond the oil and gas sector where stress has thus far been most visible. Source: LA Times As Ryman Hospitality Properties built a hospitality and entertainment empire around the original Nashville radio show, the parent company’s debt grew to more…
Just how bad COVID-19 will ultimately be for the US and global economy is difficult to say, with no real frames of reference as precedent – the author discusses two extreme scenarios as a framework for what may be. Source: Bloomberg How bad COVID-19 will be for the U.S. economy is almost impossible to say,…
Apart from the market risk ramifications of COVID-19, the fact that we are also in the early stages of a large-scale operational-risk episode, including the negative impact on liquidity of traders working from home. Source: Bloomberg via GARP (Bloomberg) — The impact of the coronavirus outbreak on Wall Street may worsen trading conditions for one…
Global corporate bond market door slammed shut on Coronavirus fears and uncertainty. Source: Yahoo Finance (Bloomberg) — The global credit machine is grinding to a halt. The $2.6 trillion international bond market, where the world’s biggest companies raise money to fund everything from acquisitions to factory upgrades, came to a virtual standstill as the coronavirus…
The OECD warns of lower overall credit quality in the current stock of outstanding corporate bonds, with higher payback requirements, longer maturities and inferior covenant protection compared to other credit cycles. Source: Nasdaq PARIS, Feb 18 (Reuters) – The build-up of corporate bonds has hit unprecedented levels since the 2008 financial crisis and created a…
In the next decade, Fintechs anticipate AI will have expanded their workforce by 19%. Source: World Economic Forum Artificial intelligence (AI) is in the process of transforming a variety of models in the global financial services industry, a global survey jointly conducted by the Cambridge Centre for Alternative Finance (CCAF) at the University of Cambridge…
Economists and investment strategists are pretty much in line with respect to intensifying Coronavirus risks over the short term, with however less uniformity of view in terms of the medium term ramifications for the global economy. Source: Bloomberg via GARP (Bloomberg) — A raft of new coronavirus cases in numerous countries outside China over the…
Fed Chairperson Powell calls current policy stance “appropriate”, with the economy in a “good place. Source: Thomson Reuters WASHINGTON (Reuters) – Federal Reserve Chair Jerome Powell told Congress on Tuesday that the U.S. economy is in a good place, even as he cited the potential threat from the coronavirus in China and concerns about the…
London’s dominance as European financial center threatened by post-Brexit politics and political wrangling. Source: Bloomberg via GARP (Bloomberg) — Talks on the post-Brexit future of European capital markets have largely avoided the toxic haggling of the broader negotiations — until now. U.K. Chancellor of the Exchequer Sajid Javid and chief European Union negotiator Michel Barnier…
The good and the bad of Trump’s economy. Source: Thomson Reuters WASHINGTON (Reuters) – The United States is in its 11th year of a record-setting economic expansion, a fact that President Donald Trump highlighted in his State of the Union speech to Congress on Tuesday. With “The Great American Comeback” as its theme, Trump focused…
With trading volumes for US corporate bonds up
