Global Leveraged Finance: Market View
This page offers Moody’s insights into leveraged loans and high yield bonds. It highlights proprietary indicators that assess current and projected credit risk and defaults, our view on spec-grade liquidity health, covenants and refunding risk.
  • SUMMARY
  • REPORTS

  • OUTLOOK
    10 Nov 2020|Moody's Investors Service
    Debt issuance will somewhat exceed 2020, supported by M&A and fallen angels, even as defaults head to 5.7% in March 2021.

    06 Nov 2020
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    US - KEY RISK INDICATORS
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    20 Nov 2020
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    SECTOR IN-DEPTH
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    SECTOR IN-DEPTH
    15 Oct 2020|Moody's Investors Service
    Our B3N Indicator decreased to 3.5 for the quarter, from 4.0, and is now in neutral territory, which implies improving trends for all three sub-indicators quarter-over-quarter, but still signals an elevated 3-year default forecast for this population at 31%, though revised down from a higher 34% a quarter ago.

    SECTOR IN-DEPTH
    20 Nov 2020|Moody's Investors Service
    The LSI continues to improve, falling further below its long-term average.
    SECTOR IN-DEPTH
    23 Mar 2020|Moody's Investors Service
    The vast majority of first-lien leveraged loans have little or no covenant protection and often no loss-absorbing debt below them, leaving lenders poised for worse recoveries in a downturn.
    EMEA - KEY RISK INDICATORS
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    20 Oct 2020
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    COMPILATION
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    COMPILATION
    20 Oct 2020|Moody's Investors Service
    Downgrade/upgrade ratio decreases in September 2020.

    COMPILATION
    20 Oct 2020|Moody's Investors Service
    Solid issuance in September.
    COMPILATION
    20 Oct 2020|Moody's Investors Service
    The European covenant quality indicator (E-CQI) was 3.91 for Q2 2020, the first time it has risen above 3.90. The E-CQI in Q2 2020 fell to its lowest level, driven by low issuance volume and repeat issuers using historic weak covenant packages.
    APAC - KEY RISK INDICATORS
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    20 Oct 2020
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    SECTOR IN-DEPTH
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    SECTOR IN-DEPTH
    19 Oct 2020|Moody's Investors Service
    The ALSI increased slightly to 37.7% in September from 37.0% in August as 55 of our 146 rated high-yield companies had weak liquidity.

    SECTOR IN-DEPTH
    20 Oct 2020|Moody's Investors Service
    Rated issuance of $12.9 billion, the fourth largest quarterly issuance on record.
    SECTOR IN-DEPTH
    20 Oct 2020|Moody's Investors Service
    Chinese property bonds bring Q3 covenant quality score to all-time weakest level.
    LATAM - KEY RISK INDICATORS
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    26 Oct 2020
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    COMPILATION
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    COMPILATION
    26 Oct 2020|Moody's Investors Service
    LatAm high-yield issuance fell to $4.4 billion in the third quarter and totals $17.2 billion year-to-date.

    COMPILATION
    26 Oct 2020|Moody's Investors Service
    Our LatAm Liquidity Stress Indicator (LatAm LSI) increased to 17.5% in September from 15.5% in June, well above the average for the last 12 months of 11.6%.

    KEY CONTACTS
    Christina Padgett (AMERICAS)
    Associate Managing Director – Corporate Finance
    Christina.padgett@moodys.com
    Sandra Veseli (EMEA)
    Managing Director – Corporate Finance
    Sandra.veseli@moodys.com
    Laura Acres (APAC)
    Managing Director – Corporate Finance
    Laura.acres@moodys.com