Less Borrowing Amid Faster Profits Trims Risk (Capital Markets Research) - Moody's Capital Markets Research

Less Borrowing Amid Faster Profits Trims Risk (Capital Markets Research)

Less Borrowing Amid Faster Profits Trims Risk (Capital Markets Research) - Moody's Capital Markets Research
Less Borrowing Amid Faster Profits Trims Risk (Capital Markets Research)
Published Mar 16, 2017
22 pages — Published Mar 16, 2017
Price US$ 750.00  |  Buy this Report Now

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Abstract:

WEEKLY MARKET OUTLOOK MARCH 16, 2017 CAPITAL MARKETS RESEARCH Moodys 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. Less Borrowing Amid Faster Profits Trims Risk Credit Markets Review and Outlook by John Lonski Less Borrowing Amid Faster Profits Trims Risk. ¯ FULL STORY PAGE 2 The 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, The latest surge by high-yield borrowing has been driven by the refinancing of outstanding debt, as opposed to the accumulation of new debt, begin on page 10. ¯ FULL STORY PAGE 10 Ratings Round-Up by Njundu Sanneh Upgrades Hold Sway. ¯ FULL STORY PAGE 14 Market Data Credit spreads, CDS movers, issuance. ¯ FULL STORY PAGE 16 Moodys Capital Markets Research recent publications Links to commentaries on: Korea, Caa, yes, hike, VIX, rates, France, demography, boom, Japan, reform, India, Turkey, risk, UK, deregulation, potential, BAC, optimism, Portugal, DB. ¯ FULL STORY PAGE 20 Credit Spreads Investment Grade: Year-end 2017 spread to exceed its recent 120 bp. High Yield: After recent spread of 419 bp, it may approximate 475 bp by year-end 2017. Defaults US HY default rate: after February 2017s 5.4%, Moodys Credit Policy Group forecasts it near 3.1% during the three- months-ended February 2018. Issuance In 2016, US$-denominated IG bond issuance grew by 5.5% to a record $1.411 trillion, while US$-priced high-yield bond issuance fell by -3.5% to $341 billion. For 2017, US$- denominated IG bond issuance may rise by 3.2% to a new zenith of $1.458 trillion, while US$-priced high-yield bond issuance may increase by 11.2% to $380 billion, which would lag 2014s $435 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) Li 1.212.553.1404 Xian.li@moodys.com Moody's Analytics/Europe: Tomas Holinka +420 ( 221) 666-384 Tomas....

  
Source:
Document ID
PBC_194863
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
Upgrades Hold Sway.11
Market Data11
Moody s Capital Markets Research recent publications11
Weekly Market Outlook Contributors:11
Credit Markets Review and Outlook23
  Net borrowing sinks to slowest pace since Q4-201031
  Ratio of internal funds to debt can presage direction taken by defaults31
  Q4-2016 s ratio of internal funds to debt is more worrisome than ratio of pretax profits to debt31
  Drop by net equity buybacks helps pare net borrowing41
The Week Ahead US, Europe, Asia-Pacific55
  THE US51
    Friday, March 1751
  Industrial Production &Capacity Utilization February51
  University of Michigan Consumer Sentiment March Preliminary51
  Leading Economic Indicators Index February51
    Wednesday, March 2251
  Existing Home Sales February51
    Thursday, March 2351
  New Home Sales - February51
    Friday, March 2461
  Durable Goods Orders February61
  EUROPE61
    Thursday, March 1671
  Euro Zone: Consumer Price Index (February; 10:00 a.m. GMT)71
  U.K.: Monetary Policy and Minutes (March; 12:00 a.m. GMT)71
    Friday, March 1771
  Asia-Pacific71
    Friday, March 1781
  Singapore Foreign Trade February81
    Monday, March 2081
    Tuesday, March 2181
    Wednesday, March 2281
  Japan Foreign Trade February81
    Thursday, March 2381
  New Zealand Monetary Policy March81
  Taiwan Industrial Production February91
  Taiwan Domestic Trade February91
    Friday, March 2491
  South Korea Consumer Sentiment Index March91
  New Zealand Foreign Trade February91
  Singapore Industrial Production February91
The Long View104
  Credit spreads101
  The recent high-yield bond spread of 419 bp is less than what is predicted by the spread s macroeconomic drivers and the high-yield EDF metric, but it is wider than what might be inferred from a now below-trend VIX index. The implications for liquidit...101
  Defaults101
  US CORPORATE BOND ISSUANCE101
  US Economic Outlook111
  EUROPE112
  Asia Pacific131
  How long will the upturn last?131
Ratings Round-Up141
Ratings Round-Up141
Ratings Round-Up151
Market Data164
Moody s Capital Markets Research recent publications203

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MLA:
Moody's Capital Markets Research. "Less Borrowing Amid Faster Profits Trims Risk (Capital Markets Research)" Mar 16, 2017. Alacra Store. Mar 28, 2024. <http://www.alacrastore.com/storecontent/Moody-s-Capital-Markets-Research/Less-Borrowing-Amid-Faster-Profits-Trims-Risk-Capital-Markets-Research-2141-3228>
  
APA:
Moody's Capital Markets Research. (2017). Less Borrowing Amid Faster Profits Trims Risk (Capital Markets Research) Mar 16, 2017. New York, NY: Alacra Store. Retrieved Mar 28, 2024 from <http://www.alacrastore.com/storecontent/Moody-s-Capital-Markets-Research/Less-Borrowing-Amid-Faster-Profits-Trims-Risk-Capital-Markets-Research-2141-3228>
  
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