Moody's Analytics 2020 Articles
Highly leveraged corporate balance sheets have often been cited as one of the greater threats to both the most richly valued U.S. equity market since 2000 and a record-long business cycle upturn.
After shrinking by 0.6% year over year during January-September 2019, yearlong 2019's core after-tax profits may be unchanged annually, at best.
Recent CECL impact disclosures point directly to credit cards as the largest driver of the allowance. We can confirm those recent disclosures by looking at the consumer default volumes chart in Figure 1,which clearly point to the credit card segment as being one of the largest contributors of loss today.
One benefit CECL will bring to the accounting space is moving away from the complicated and burdensome accounting for Purchase Credit Impaired (PCI) assets.
The impending Phase One trade agreement between the U.S. and China has delivered more questions than answers. The Office of the U.S. Trade Representative posted a two-page fact sheet on December 13 detailing the pending agreement in general terms but provided few details.
An overvalued equity market increases the risk of a deep sell-off of equities that will damage corporate credit.