Market Moves
Not So Junky: Speculative Bond Yields Near 4%
After dire predictions of disaster for high-yield paper, defaults never hit the painful levels forecast last spring.
Tag: Moody’s
Market Moves
Market Already Has Priced in Good 2021 Earnings, Says Moody’s
Profit forecasts are heady for next year, after 2020’s bust. But it won’t boost stocks much, John Lonski says.
During the Great Financial Crisis, Overly Optimistic Ratings Helped Kill the Market. Could It Be Happening Again?
An academic report found a major difference between ratings for tranches and their underlying securities that could indicate CLOs are riskier than investors think.
Risk
Attack of the Zombies: Potential Deadbeats Are Almost 20% of Companies, Says DB
US businesses that lack the income to pay their huge debt service, kept alive by more borrowing, are on shaky ground, Deutsche Bank Securities’ Sløk warns.
Risk
Credit Raters Get Slammed Once Again as Too Lenient
S&P and Moody’s take it heavy in an SEC hearing. A run-up to a replay of their 2008-09 vilification?
Asset Management Culture
NC State Pension Weathers Market Turmoil Well as Others Crumble
‘You can’t be a gambler, and you can’t profess to have a crystal ball,” says state treasurer Dale Folwell.
Newsmakers
No Recession Before the 2020 Election, Goldman Chief Predicts
David Solomon gives odds of a downturn next year as just 25%, which would be good news for Donald Trump.
Asset Allocation
Tumbling 10-Year T-Note Yields Have Lower to Go, Moody’s Says
Now 1.51%, the research unit says it could slide to between 0.5% and 1% in a recession.
Regulation
Moody’s: Kentucky Pension Reform Is a Negative for State’s Credit Rating
Credit agency says the reform only pushes costs into the future. Gov. Bevin says he’s ‘not surprised.’
Corporate Debt Binge Will Ebb, Moody’s Predicts
Earnings slowdown expected to propel a movement away from heavy borrowing.
Big BBB Downgrade Damage Ahead? Maybe Not
Why the anxiety about this overstuffed bond category may be overdone.
Passive Investing to Overtake Active in 2021, Says Moody’s
Indexes now make up a bit more than one-third of funds, but will reach 50% in two years, the agency says.
Moody’s Downgrades Rise, Amid Towering Corporate Debt
Downgrades continue to outnumber upgrades, although interest coverage seems stable enough, for now.
Regulation
Moody’s Cautiously Upbeat on Brexit Extension
Ratings agency says allowing more time for EU talks would be ‘credit positive,’ though it isn’t upgrading Britain now.
Straw in Wind? Near-Junk Ratings Dominate US Corporate Bonds
Baa–rated issues reach record, although defaults at this stage are not worrisome, Moody’s data indicates.