WEEKLY MARKET OUTLOOKSEPTEMBER 3, 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.Equity Volatility Vexes Corporate CreditCredit Markets Review and Outlook by John Lonski Equity Volatility Vexes Corporate Credit. ¯ FULL STORY PAGE 2The Week Ahead We preview economic reports and forecasts from the US, UK/Europe, and Asia/Pacific regions. ¯ FULL STORY PAGE 5 The Long View Check our chart here for forecast summaries of key credit market metrics. Full updated stories, Amid the considerable equity market volatility of 2011s second half, the worldwide issuance of corporate bonds incurred year-over-year setbacks of -19% for investment-grade and -62% for high-yield, begin on page 14.¯ FULL STORY PAGE 14Ratings Round-Up by Njundu Sanneh Turnabout.¯ FULL STORY PAGE 17Market Data Credit spreads, CDS movers, issuance.¯ FULL STORY PAGE 19Moodys Capital Markets Research recent publications Links to commentaries on: CHK, Cisco, CONSOL, bank risk, SO, Thailand, cycle, Portugal, US strength, bond outflow, China, Australia, STI, CMA, Linn, Brazil, PRU, dollar. ¯ FULL STORY PAGE 23Credit Spreads Investment Grade: Year-end 2015 spread to be under its recent 167 bp.High Yield: Recent spread of 583 bp should approximate 550 bp by year-end 2015.Defaults US HY default rate: July 2015, 2.4%; Moodys Credit Policy Group forecasts 2.8%by July 2016Issuance For 2015, US$ IG bond offerings may grow by 22% to $1.372 trillion, while US$ HY bond issuance sinks by -6% to $3941 billion. In 2014, US$ 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: Petr Zemcik +44 (20) 7772-1942 Petr.zemcik@moodys.comMoody's Analytics/Asia-Pacific: Alaistair Chan 1.612.9270.8148 Alaistair.chan@moodys.com Katrina Ell 1.612.9270.8144 Katrina.ell@moodys.comEditor Dana Gordon 1.212.553.0398 dana.gordon@moody...
