The pandemic has inflicted a temporary but material shock to the consumer goods industry. Path to recovery remains uncertain in its timing and trajectory although big brands are likely to get bigger while the premiumization trend is put on hold. We also expect disruption to travel spending to remain.

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The report includes a round-up of the latest credit developments that we've observed across structured finance sectors, along with data on recent rating actions and underlying performance indicators. We also highlight the key takeaways from our recent research publications.

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The U.S. Leveraged Finance and Recovery team is producing a monthly podcast series entitled “The Upgrade.” This series focuses on leveraged finance issuers that have upward rating potential, providing listeners with concise insights from the primary analyst along with relevant CLO market implications. In the time of Covid-19, other timely topics are also being discussed. Please subscribe below: 

In episode 2 of “The Upgrade”, we discuss how CLO investors faced off with distressed investors in Acosta's bankruptcy and how CLO investors may leverage their holdings to limit the extent to which distressed investors tilt the process in their favor. 

As markets continue to transition from the COVID-19 pandemic, we'll address and answer key concerns and questions from clients.

Please register and join us on:Thursday, June 25th at 4:00 p.m. Experts from State Street SPDR ETFs and S&P Global will cover:

The Federal Reserve will likely be able to carry out yield curve control very effectively, says Shaun Roache from S&P Global Ratings, noting that the Fed is among several central banks that have decided negative rates could do more harm than good.

The short-term 'A-1 (sf)' ratings assigned to Ionic Capital II Trust's U.S. dollar-denominated class A notes and B certificates reflect our view of: The program's legal structure, including Ionic Capital II Trust's intended bankruptcy-remote status; The equity total return swap(s) (TRS) with Citibank N.A. (Citi; A+/Stable/A-1); The amounts received from the TRS, which are sufficient to pay the outstanding class A notes and B certificates on or before their respective payment dates, as well as fees and expenses.

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The short-term 'A-1 (sf)' ratings assigned to Ionic Capital II Trust's U.S. dollar-denominated class A notes and B certificates reflect our view of: The program's legal structure, including Ionic Capital II Trust's intended bankruptcy-remote status; The equity total return swap(s) (TRS) with Citibank N.A. (Citi; A+/Stable/A-1); The amounts received from the TRS, which are sufficient to pay the outstanding class A notes and B certificates on or before their respective payment dates, as well as fees and expenses.

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Green issuance and investment is on a firm upward trajectory, propelled by the 2015 Paris Climate Agreement, and the impetus it created t finance $1 trillion a year in investments for renewable energy and other initiatives to limit global warming. At the same time, long-term investors are also recognizing the threat from greenhouse gases and have begun to diversify portfolios away from carbon-based investment. The final push is coming from corporations as they start to contend with the consequences of increasingly extreme and violent weather and flooding. Many are starting to see that managing environmental exposure may be more than risk management; it may be good for business.

The COVID-19 pandemic has struck South Africa at a time of very weak growth and fiscal pressures. GDP growth has taken a big hit due to strict lockdowns and markedly weaker external demand. We lowered our foreign currency ratings on South Africa to 'BB-' from 'BB' on April 29, 2020. The stable outlook reflects the balance between pressures relating to very low GDP growth and high fiscal deficits, and the sovereign's deep financial markets and monetary flexibility. We anticipate that the banking sector will contract due to the economic crisis, and forecast that credit to the private sector will shrink by about 5% in 2020. We expect that the banking sector's credit losses will rise to about 1.2% in 2020, mostly stemming from defaults on retail and small-to-midsize-enterprise loans. Nevertheless, the South African Reserve Bank's liquidity measures will ensure the stability of the financial and banking sectors. We lowered our ratings on top-tier South African banks to 'BB-' in...