High Shareholder Compensation Menaces Credit (Capital Markets Research) - Moody's Capital Markets Research

High Shareholder Compensation Menaces Credit (Capital Markets Research)

High Shareholder Compensation Menaces Credit (Capital Markets Research) - Moody's Capital Markets Research
High Shareholder Compensation Menaces Credit (Capital Markets Research)
Published Jun 23, 2016
27 pages — Published Jun 23, 2016
Price US$ 750.00  |  Buy this Report Now

About This Report

  
Abstract:

WEEKLY MARKET OUTLOOKJUNE 23, 2016CAPITAL MARKETS RESEARCHHigh Shareholder Compensation Menaces Credit Credit Markets Review and Outlook by John Lonski High Shareholder Compensation Menaces Credit.¯ FULL STORY PAGE 2Topic of the Week by Ben Garber US Corporate Downgrade Warnings Take a Breather. ¯ FULL STORY PAGE 5The Week Ahead We preview economic reports and forecasts from the US, UK/Europe, and Asia/Pacific regions. ¯ FULL STORY PAGE 9The Long View Check our chart here for forecast summaries of key credit market metrics. Full updated stories, The annual growth of US$-denominated investment-grade bond issuance is expected to rise from H1-2016s 1% to 14% for H2-2016, begin on page 16. ¯ FULL STORY PAGE 16Ratings Round-Up by Njundu Sanneh Downgrades Up in US; Upgrades Up in Europe.¯ FULL STORY PAGE 19Market Data Credit spreads, CDS movers, issuance.¯ FULL STORY PAGE 21Moodys Capital Markets Research recent publications Links to commentaries on: Angang, Hungary, foreboding, ECB, FedEx, Portugal, XOM, equities, SOCGEN, CASA, YUM, IBM, oil, banks, REP, profits, spreads. ¯ FULL STORY PAGE 25Credit SpreadsInvestment Grade: Year-end 2016 spread to be close to its recent 145 bp. High Yield: After recent spread of 609 bp, it may approximate 63 bp by year-end 2016.Defaults US HY default rate: after May 2016s 5.0%, Moodys Credit Policy Group forecasts 6.4% by Q4 2016.Issuance In 2015, US$-denominated investment-grade (IG) bond offerings advanced by 17.5% to $1.326 trillion, while US$-denominated high-yield bond issuance sank by -15.0% to $358 billion. For 2016, US$-denominated IG bond issuance may increase by 6.5% to a record $1.412 trillion, while US$-priced high-yield bond issuance may sink by -11.4% to $313 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: Tomas Holinka +420 ( 221) 666-384 Tomas.holinka@moodys.comMoody's Analytics/Asia-Pacific: Jack Chambers +61 (2) 9270-8118 Jack.chambers@moodys.com Faraz Syed +61 (2) 9270-8146 Faraz.sayed@moodys.comEditor Dana Gordon 1.212.553.0398 dana.gordon@moodys.comMoodys Analytics markets and distributes all Moodys Capital Markets Research, Inc. materials. Moodys Capital...

  
Source:
Document ID
PBC_190675
Report Type
Market Outlook
Format:
PDF Adobe Acrobat
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Sections

TitleStarting PageNumber of Pages
The Week Ahead11
The Long View11
Ratings Round-Up by Njundu Sanneh11
Downgrades Up in US; Upgrades Up in Europe.11
Market Data11
Moody s Capital Markets Research recent publications11
Weekly Market Outlook Contributors:11
Credit Markets Review and Outlook23
  High shareholder compensation ratio signals wide spreads21
  Net equity buybacks attain liveliest pace since 200731
  M&A may have already peaked for the cycle41
Topic of the Week By Ben Garber, Economist, Moody s Capital Markets Research, Inc.54
  Upgrade reviews tick higher51
  Lower incidence of distress will limit defaults61
  Sector outlooks maintain a negative slant71
  Spreads mark divergence between sectors72
The Week Ahead US, Europe, Asia-Pacific97
  THE US91
    Friday, June 2491
  Durable Goods Orders May91
  University of Michigan Consumer Sentiment June Final91
    Tuesday, June 2891
  GDP First Quarter (Third Estimate)91
  S&P / Case-Shiller Home Price Index April91
  Conference Board Consumer Confidence June91
    Wednesday, June 29101
  Personal Income &Spending May101
  Pending Home Sales Index May101
    Friday, July 1101
  ISM Manufacturing Index June101
  Construction Spending May101
  Vehicle Sales June101
  EUROPE111
    Friday, June 24111
  Asia-Pacific121
    Friday, June 24121
  Singapore Industrial Production May121
    Monday, June 27121
  New Zealand Foreign Trade May121
  Hong Kong Foreign Trade May121
    Tuesday, June 28121
  South Korea Consumer Sentiment Index June121
    Wednesday, June 29131
  Thailand Industrial Production May131
  Japan Retail Sales May131
    Thursday, June 30131
  South Korea Industrial Production May131
  South Korea Retail Sales May131
  Japan Industrial Production May131
  Japan Housing Starts May131
  Thailand Private Consumption May141
  Thailand Foreign Trade May141
    Friday, July 1141
  South Korea Consumer Price Index June141
  Japan Consumer Price Index May141
  Japan Employment Situation May141
  Japan Household Expenditures Survey May151
  Japan Tankan Survey 2016Q2151
  South Korea Foreign Trade June151
  Malaysia Foreign Trade May151
  Japan Consumer Confidence June151
The Long View163
  Credit spreads161
  Defaults161
  US economic outlook171
  The mid-point of the range for fed funds should finish 2016 no greater than 0.875%. In view of the considerable under-utilization of the world s productive resources, low inflation should help to rein in treasury bond yields. As long as labor is gro...171
  EUROPE171
  The euro zone economy rebounded to pre-crisis levels in the three months to March, and its quarterly growth has out-paced the growth in the wider European Union for the first time since late 2010. Robust growth in Spain, Germany and France, where dome...171
  Despite the growing economy and rebounding commodity prices, including the prices of energy products and industrial metals, inflation will remain subdued in coming quarters and long-term inflation expectations remain close to a record low. The five-ye...171
  The European Central Bank kept all three policy rates and monthly asset purchases on hold in June despite deflation pressures and slowing economic growth. Meanwhile, the ECB started to buy corporate debt in early June and provided additional long-term...171
  Moody s Analytics expects U.K. economic growth to moderate to 2.0% this year from 2.2% in 2015, before accelerating to 2.5% in 2017, assuming the U.K. will remain in the EU. The results of EU membership referendum wasn t known by the deadline of this ...171
  CPI inflation remains subdued. The figure again came in below expectations, holding steady at 0.3% y/y in May and falling marginally below the projected path in the May inflation report. Core inflation also failed to accelerate, holding at 1.2% y/y in...171
  Because of weaker than expected inflation and output growth, softer global conditions, and elevated uncertainty, we do not expect a main policy rate hike until the first quarter of 2017. In June, the BoE cited the forthcoming referendum as a key domes...171
  Asia Pacific181
Ratings Round-Up191
Ratings Round-Up191
Ratings Round-Up201
Market Data214
Moody s Capital Markets Research recent publications253

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Moody's Capital Markets Research—Moody's Analytics offers research, unique tools and best practices for measuring and managing risk through expertise and experience in credit analysis, economic research and financial risk management.

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Cite this Report

  
MLA:
Moody's Capital Markets Research. "High Shareholder Compensation Menaces Credit (Capital Markets Research)" Jun 23, 2016. Alacra Store. May 04, 2025. <http://www.alacrastore.com/storecontent/Moody-s-Capital-Markets-Research/High-Shareholder-Compensation-Menaces-Credit-Capital-Markets-Research-2141-3099>
  
APA:
Moody's Capital Markets Research. (2016). High Shareholder Compensation Menaces Credit (Capital Markets Research) Jun 23, 2016. New York, NY: Alacra Store. Retrieved May 04, 2025 from <http://www.alacrastore.com/storecontent/Moody-s-Capital-Markets-Research/High-Shareholder-Compensation-Menaces-Credit-Capital-Markets-Research-2141-3099>
  
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