Leveraging Will Survive Corporate Tax Reform (Capital Markets Research) - Moody's Capital Markets Research

Leveraging Will Survive Corporate Tax Reform (Capital Markets Research)

Leveraging Will Survive Corporate Tax Reform (Capital Markets Research) - Moody's Capital Markets Research
Leveraging Will Survive Corporate Tax Reform (Capital Markets Research)
Published Feb 02, 2017
29 pages — Published Feb 02, 2017
Price US$ 750.00  |  Buy this Report Now

About This Report

  
Abstract:

WEEKLY MARKET OUTLOOK FEBRUARY 2, 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. Leveraging Will Survive Corporate Tax Reform Credit Markets Review and Outlook by John Lonski Leveraging Will Survive Corporate Tax Reform. ¯ FULL STORY PAGE 2 Topic of the Week by Ben Garber Bond Issuance Boom Precedes Policy Shifts. ¯ FULL STORY PAGE 5 The Week Ahead We preview economic reports and forecasts from the US, UK/Europe, and Asia/Pacific regions. ¯ FULL STORY PAGE 8 The Long View Check our chart here for forecast summaries of key credit market metrics. Full updated stories, Januarys new bank loan programs graded Baa-or-lower were a record $91.42 billion, surpassing November 2007s old zenith of $81.80 billion, begin on page 16. ¯ FULL STORY PAGE 16 Ratings Round-Up by Njundu Sanneh Upgrades Predominate in US, Downgrades in Europe. ¯ FULL STORY PAGE 21 Market Data Credit spreads, CDS movers, issuance. ¯ FULL STORY PAGE 23 Moodys Capital Markets Research recent publications Links to commentaries on: India, Turkey, risk, UK, deregulation, potential, BAC, optimism, Portugal, DB, revisions, outlook, US, great, China, Italy, inflation, OPEC, guidance, sovereigns, inflation. ¯ FULL STORY PAGE 27 Credit Spreads Investment Grade: Year-end 2017 spread to exceed its recent 120 bp. High Yield: After recent spread of 398 bp, it may approximate 450 bp by year-end 2017. Defaults US HY default rate: after December 2016s 5.7%, Moodys Credit Policy Group forecasts it near 3.9% by 2H 2017. Issuance In 2016, US$-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 2.0%, while US$-priced high-yield bond issuance may increase by 6.0%. 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) 666-38...

  
Source:
Document ID
PBC_194256
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 Predominate in US, Downgrades in Europe.11
Market Data11
Moody s Capital Markets Research recent publications11
Weekly Market Outlook Contributors:11
Credit Markets Review and Outlook23
  Corporate debt sped past GDP and revenues despite tax cuts of 1987-198821
  Stock buybacks soared following tax cuts of 1987-198831
  Ending deductibility of interest costs carries risks41
  Refinancings of outstanding debt may lose interest deductibility41
  Interest deductibility s demise may soften equity prices41
Topic of the Week By Ben Garber, Economist, Moody s Capital Markets Research, Inc.53
  High grade borrowers lead issuance surge51
  Financial firms lead record Yankee issuance51
  Higher-risk borrowing is shifting higher61
  US policy changes may challenge issuance growth71
The Week Ahead US, Europe, Asia-Pacific88
  THE US81
    Friday, February 381
  Employment Report January81
  ISM Non-Manufacturing Index January81
  Factory Orders December81
    Tuesday, February 781
  Trade Balance December81
    Friday, February 1081
  Import Price Index January81
  University of Michigan Consumer Sentiment February Preliminary91
  EUROPE91
    Friday, January 27101
  Euro Zone: Monetary Aggregates (December; 9:00 a.m. GMT)101
    Monday, January 30101
  Germany: Unemployment (January; 9:00 a.m. GMT)101
    Tuesday, January 31101
  France: GDP (Q4; 6:30 a.m. GMT)101
  France: Household Consumption Survey (December; 7:45 a.m. GMT)101
  Euro Zone: Unemployment (December; 10:00 a.m. GMT)111
  Euro Zone: Preliminary GDP (Q4; 10:00 a.m. GMT)111
  Euro Zone: Preliminary CPI (December; 10:00 a.m. GMT)111
    Wednesday, February 1111
    Thursday, February 2111
  U.K.: Monetary Policy and Minutes (February; 12:00 a.m. GMT)111
    Friday, February 3121
  Asia-Pacific121
    Friday, February 3121
    Monday, February 6131
  Australia Retail Sales December131
    Tuesday, February 7131
  Indonesia GDP 2016Q4131
  Australia Monetary Policy February131
  Taiwan Foreign Trade January131
    Wednesday, February 8131
  Taiwan Consumer Price Index January131
  Malaysia Foreign Trade December131
  Thailand Monetary Policy February141
  India Monetary Policy February141
    Thursday, February 9141
  New Zealand Monetary Policy February141
  Japan Machinery Orders December141
    Friday, February 10141
  China Foreign Trade January141
  Philippines Industrial Production December151
  Australia Housing Finance December151
  Japan Industry Activity Indexes December151
  India Industrial Production December151
  Malaysia Industrial Production December151
The Long View165
  Credit spreads161
  The recent high-yield bond spread of 398 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...161
  Defaults161
  US CORPORATE BOND ISSUANCE161
  US Economic Outlook171
  EUROPE172
  Asia Pacific192
Ratings Round-Up211
Ratings Round-Up211
Ratings Round-Up221
Market Data234
Moody s Capital Markets Research recent publications273

Table Of Contents

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. "Leveraging Will Survive Corporate Tax Reform (Capital Markets Research)" Feb 02, 2017. Alacra Store. May 16, 2024. <http://www.alacrastore.com/storecontent/Moody-s-Capital-Markets-Research/Leveraging-Will-Survive-Corporate-Tax-Reform-Capital-Markets-Research-2141-3208>
  
APA:
Moody's Capital Markets Research. (2017). Leveraging Will Survive Corporate Tax Reform (Capital Markets Research) Feb 02, 2017. New York, NY: Alacra Store. Retrieved May 16, 2024 from <http://www.alacrastore.com/storecontent/Moody-s-Capital-Markets-Research/Leveraging-Will-Survive-Corporate-Tax-Reform-Capital-Markets-Research-2141-3208>
  
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