The risk-of-default ratios for consumer industries have decreased from higher peaks earlier this year, but they are still trending above the levels they enjoyed before the coronavirus pandemic. Source: S&P Global Drug retailers, department stores, and the travel and leisure industries — considered the most vulnerable sectors by S&P Global Market Intelligence’s median one-year market…
U.S. companies have rushed to borrow, selling more than $1 trillion of high-grade notes in just the last few months, and some of the proceeds have trickled down to banks. Underwriting fees for blue-chip U.S. company bonds in the first half of the year essentially doubled to more than $7 billion, year over year. Use…
This high level of corporate debt has made the U.S, particularly vulnerable to sharp downturns in global economic activity. Source: S&P Global Since mid-February, the market has turned sharply down in response to the coronavirus pandemic. The S&P 500® has fallen about 32% from its peak this year. Equity volatility shot up, as VIX® went…
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…
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…
Historically, the majority of January debt sales comes from the financial sectors as banks try to fulfill their funding needs following earnings releases. Source: Bloomberg News (Bloomberg) — Sales of U.S. high-grade bonds will total between $30 billion and $35 billion next week, according to an informal survey of dealers at some of Wall Street’s…
McDonald’s sold $2.3 billion of euro-denominated bonds last week as U.S companies take advantage of the eurozone’s cheap debt. Source: The Wall Street Journal A giant new buyer in the corporate-bond market–the European Central Bank–is set to cement a trend of American companies issuing debt on the continent. So great may be the flood, some analysts…
LONDON, UNITED KINGDOM, ENGLAND, February 27, 2024 /EINPresswire.com/
