Our subject matter experts discuss the use of credit risk measures in evaluating firms to determine tendencies in performance in comparison to their peers in the S&P 500 universe.
In early October, equity markets suffered their second major correction this year and their worst fall in more than eight months. Rising yields in particular increase the potential for equity volatility.
Our subject matter experts demonstrate that firms with high credit quality risk and high default risk tend to underperform their peers in the S&P 500 universe on average, especially seen in the tech sector over the last two years. Our experts also show how CreditEdge factor-based strategies have tended to succeed in particular during flattening yield curve environments, with the performance of the low credit quality risk strategy tending to be more insulated to interest rate risk on average.
Recent equity market volatility stems from shifting views regarding whether current and future upturns by COVID-19 will prove manageable.
Even without COVID-19, long-term prospects for U.S. economic growth fell considerably short of what held during the second half of the 20th century.
More than anything else, the unknown course of COVID-19 remains the biggest threat to the business outlook.
According to a consensus estimate compiled by FactSet, the composite earnings per share (EPS) of the S&P 500's member companies is likely to plunge by 43% year-to-year.
Ongoing rallies by both the equity and corporate bond markets assume that any forthcoming rise by financial distress among businesses, households, as well as state and local governments, will be manageable.
As inferred from May-to-date's average 2.56-million initial state jobless claims per week, another outsized shrinkage of payrolls is likely following the loss of 881,000 jobs in March and the mind-boggling disappearance of 20.54-million jobs in April.
Across all rating categories, the recent $7.830 trillion of nonfinancial-corporate debt of North American nonfinancial companies rated by Moody's Investors Service was divided among $5.994 trillion of outstanding corporate bonds, $1.392 trillion of outstanding loans, and $444 billion of revolving credit facilities.
Expectations of an unfolding upswing by business activity from a miserable April have lifted financial markets.
In March 2020, the issuance of US$-denominated investment-grade (IG) corporate bonds soared to a record $268 billion, which far surpassed January 2017's erstwhile zenith of $193 billion.
En este seminario web, utilizaremos las métricas EDF de Moody’s Analytics para evaluar el impacto que COVID-19 ha tenido hasta ahora en el riesgo de crédito.