Christina Padgett and Sandra Veseli of the Corporates team, Al Remeza of the Structured Finance team, and Ana Arsov of the Financial Institutions team discuss the outlook for leveraged finance and collateralized loan obligations (CLOs) in the US and EMEA. Coronavirus-related defaults will likely peak in 2021, but banks’ exposure is limited. Lower-rated loans to coronavirus-exposed sectors will be worst affected, with a knock-on effect on the junior tranches of existing CLOs.
Michael Taylor and Lillian Li of the Credit Strategy & Research team discuss the rising credit strains on many emerging market countries that are part of the Belt & Road Initiative and the direction of the plan post-pandemic. Plus, analyst Nishad Majmudar talks about our analysis of ESG-related credit considerations in emerging market rating actions across sectors.
Ridership will not approach pre-pandemic levels for many years as the coronavirus continues to weigh on mass transit systems’ financial performance.