Investors in bank subordinated debt and hybrid securities could be exposed to elevated credit risks if regulators push ahead with proposals whereby creditors bear losses before public sector support is given, says Fitch Ratings.
The former Fed governor, now vice-chairman of Macroeconomic Advisers, talks to Credit about the US central bank’s handling of the financial crisis, and gives his views on where US monetary policy is heading.
As growth in developing economies – particularly the Bric countries of Brazil, Russia, India and China – outstrips that of the developed world, companies with sizeable emerging market exposure are looking increasingly attractive to bond investors.
As thousands of barrels of oil continue to spill into the Gulf of Mexico, energy giant BP has seen its bond spreads widen to unprecedented levels. What will be the implications for Big Oil, and can investors factor in tail risks of this magnitude?
Corporate bond issuance plummeted in May, with issuers and investors wary of the effects of the ongoing sovereign crisis on the credit markets. Faced with an unprecedented refinancing wall, it may be high yield borrowers who suffer most.
On a recent visit to New York, Credit met up with senior figures at three of the largest fixed income asset managers globally to hear their thoughts on where the US credit market is heading next and what the risks are for investors.
Inflation often accompanies the end of the recovery after a crisis, but while US companies may fear high inflation, banks and investors increasingly see deflation as the more serious risk to the US economy.
Strengthening fundamentals in the US and continued uncertainty over peripheral European economies have given rise to the notion that the US and Europe are undergoing a decoupling process. Credit looks at what this may mean for the US government bond and…
The commencement of the ECB’s government bond purchase programme and the announcement of an EU loan facility for struggling peripheral countries resulted in an immediate tightening of spreads. Yet uncertainty remains as to whether beneficiaries will be…
The head of capital markets at KfW, Horst Seissinger, explains how building long-term relationships with investors has helped the bank achieve its funding targets even during periods of extreme volatility in the financial markets.
Bond investors have snapped up German Bunds in recent weeks, with Europe’s sovereign debt crisis triggering a flight to quality. But is Germany really the safe haven it appears? Credit explores potential vulnerabilities in the German economy and assesses…