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.
DownloadWe entered the current recession with a median credit rating for corporate and sovereign entities significantly weaker than at the onset of the global financial crisis ('BBB' versus 'BB+'). Speculative-grade bond issuance more than doubled in the past decade, fueled by low interest rates. The median rating for new nonfinancial corporate issuers is 'B' globally, declining from 'BB-' in 2008. We expect the U.S. trailing 12-month speculative-grade corporate default rate to rise to 12.5% by March from 3.5% in March this year. Airports across the world face a long, slow recovery from the fall in traffic and revenues due to the lockdowns and travel restrictions related to COVID-19. We now estimate global air passenger numbers to drop 50%-55% this year, a far steeper decline than we anticipated in March. We expect passenger numbers will stay below pre-pandemic levels through 2023.
In a special Leadership Edition of Fixed Income in 15, Joe Cass is joined by President of S&P Global Ratings John Berisford and Chairman of Goldman Sachs Asset Management Sheila Patel. Discussion turned to the future of sustainable finance post-crisis, how John, Sheila and their teams are adapting to working from home and what ‘the future of work’ could look like at both institutions.
For more on S&P Global Ratings Coronavirus research and publications, click here - https://www.spglobal.com/ratings/en/research-insights/topics/coronavirus-special-report
In a special Leadership Edition of Fixed Income in 15, Joe Cass is joined by President of S&P Global Ratings John Berisford and Chairman of Goldman Sachs Asset Management Sheila Patel. Discussion turned to the future of sustainable finance post-crisis, how John, Sheila and their teams are adapting to working from home and what ‘the future of work’ could look like at both institutions. For more on S&P Global Ratings Coronavirus research and publications, click here - https://www.spglobal.com/ratings/en/r...
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