Financial stability risks: implications of rising corporate leverage
Gradual monetary tightening should moderate higher funding costs, but will still pressure highly leveraged issuers. Some assets could be at risk of correction if market sentiment turns. On this page, you will find our research on financial stability.
  • SUMMARY
  • RESEARCH

  • Podcast
    15 Jul 2019|Moody's Investors Service
    In this episode of Moody’s Talks – Global Credit, Colin Ellis and Ruosha Li of the Credit Strategy & Research team discuss the recent increase in systemic risks in the financial markets. Despite the current volatility, however, these risks remain only moderate.
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    SECTOR IN-DEPTH
    16 Jul 2019|Moody's Investors Service
    The B3 Negative and Lower List decreased mainly due to defaults not positive rating actions; it remains below its historical long-term average, not pointing to an imminent spike in defaults.

    SECTOR IN-DEPTH
    10 Jul 2019|Moody's Investors Service
    Despite our stable credit outlook for Latin America, four particular vulnerabilities across the region pose risks to its firms, sectors, consumers and governments. In a new cross-sector report we study the effects of corruption, commodity prices and portfolio flows, technological disruption, and skills gaps on Latin America’s business, finance and macro-economic conditions.

    SECTOR IN-DEPTH
    09 Jul 2019|Moody's Investors Service
    Over the past 12 months, European authorities have made further progress in reducing credit risks in the euro area. However, recent reforms fail to fully address the credit linkages between sovereigns and banks, while pockets of risk remain in both sectors.

    SECTOR COMMENT
    05 Jul 2019|Moody's Investors Service
    The Three-Year Refunding Indicator fell 2% month-over-month in June, and was down 42% year-over-year as a pick up in high-yield bond issuance was offset by higher maturities.

    SECTOR IN-DEPTH
    27 Jun 2019|Moody's Investors Service
    Default conditions provide a last line of defense. Without conditions, lenders bear the risk of leveraging or leakage actions taken in default without foreknowledge or consent.