The recent attacks on Saudi Aramco’s two oil facilities in eastern Saudi Arabia have resulted in a reduction of crude oil production by around 5.7 million barrels per day (mbpd) compared with an average production of 10 mbpd in the first half of 2019. The full extent of the credit impact for the government and Saudi Aramco will depend on the duration of the disruption to oil production.

Although the government’s proposals would limit the role of the federal housing finance agencies, the basic framework of the US mortgage financing system would remain intact under the proposals most likely to be implemented, which is a credit positive for private mortgage insurers.

Junior tranches of US & European CLOs risk impairment in a severe economic downturn. Junior tranche credit performance is at significant impairment risk in the severe downturn scenario, but senior CLO tranches are unscathed.

Although Argentina’s capital controls should ease negative exchange-rate pressures, its central bank reserve losses are likely to persist as individuals and firms continue to withdraw their foreign-currency deposits from the banking system.