Corporate Credit Withstands Higher Treasury Yields for Now (Capital Markets Research)

WEEKLY MARKET OUTLOOKMAY 7, 2015CAPITAL MARKETS RESEARCHMoodys Analytics markets and distributes all Moodys Capital Markets Research, Inc. materials. Moodys Capital Markets Research, Inc is a subsidiary of Moodys Corporation. Moodys Analytics does not provide investment advisory services or products. For further detail, please see the last page.Corporate Credit Withstands Higher Treasury Yields for Now Credit Markets Review and Outlook by John Lonski Corporate Credit Withstands Higher Treasury Yields for Now.¯ FULL STORY PAGE 2The Week Ahead We preview economic reports and forecasts from the US, UK/Europe, and Asia/Pacific regions. ¯ FULL STORY PAGE 4 The Long View Check our chart here for forecast summaries of key credit market metrics. Full updated stories, In response to the 10-year Treasury yields earlier jump from the 1.76% of the year-ended April 2013 to the 2.71% of the year-ended June 2014, the annual percent change of yearlong US$-denominated investment-grade bond issuance slumped from April 2013s 28% advance to June 2014s -2% dip, as high-yield offerings sank from a 63% surge to a -7% drop, begin on page 14.¯ FULL STORY PAGE 14Ratings Round-Up by Njundu Sanneh Notably More Rating Activity.¯ FULL STORY PAGE 17Market Data Credit spreads, CDS movers, issuance.¯ FULL STORY PAGE 19Moodys Capital Markets Research recent publications Links to commentaries on: Ocwen, Pfizer, production, Greece, TXN, HNT, fundamentals, Avon, BBT, MS, Greece, Citi, yield, Nokia, GCC, GS, EMEA, Venezuela. ¯ FULL STORY PAGE 23Credit Spreads Investment Grade: Year-end 2015 spread to be under its recent 132 bp.High Yield: Recent spread of 450 bp could dip to 445 bp by year-end 2015.Defaults US HY default rate: Mar 2015, 1.9%; 2.5% average in 4Q/2015Issuance For 2015, US$ IG bond offerings may grow by 5% to $1.19 trillion, while US$ HY bond issuance edges up by 1% to $424 billion. In 2014, US$ IG bond issuance rose by 0.9% to $1.129 trillion, while US$ HY bond issuance dropped by -2.3% to $421 billion.Click here for Moodys Credit Outlook, our sister publication containing Moodys rating agency analysis of recent news events, summaries of recent rating changes, and summaries of recent research.Moodys Capital Markets Research, Inc.Weekly Market Outlook Contributors: David W. Munves, CFA 1.212.553.2844 david.munves@moodys.com John Lonski 1.212.553.7144 john.lonski@moodys.com Ben Garber 1.212.553.4732 benjamin.garber@moodys.com Njundu Sanneh 1.212.553.4036 njundu.sanneh@moodys.com Yukyung Choi 1.212.553.0906 yukyung.choi@moodys.com Irina Baron 1.212.553.4307 irina.baron@moodys.com Franklin Kim 1.212.553.4419 franklin.kim@moodys.com Xian (Peter) Li1.212.553.1404 Xian.li@moodys.comMoody's Analytics/Europe: Zach Witton 44 (20) 7772-1678 Zach.witton@moodys.comMoody's Analytics/Asia-Pacific: Alaistair Chan 1.6...