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.

    29 Oct 2019|Moody's Investors Service
    Bond and loan convergence is making loans more bond-like and balance sheets more concentrated in first lien debt. Investors continue to cede control over debt terms and protections.

    10 Oct 2019|Moody's Investors Service
    This report analyzes the latest signals from the Moody’s US Financial Conditions Indicator, a composite of 18 measures of financial and economic activity, grouped into four components. Policy uncertainty and slowing growth could keep sentiment indicators subdued.

    02 Oct 2019|Moody's Investors Service
    The Fed’s actions demonstrate its capacity to ease liquidity quickly, but diagnosing and addressing the broader underlying causes of liquidity disruptions poses the greater policy challenge. Action by the Fed over the next several days has restored liquidity into this key market that banks and other financial institutions rely on for their short-term funding needs

    30 Sep 2019|Moody's Investors Service
    Corporate leverage in Asia-Pacific has grown substantially in the past decade amid low interest rates. Growth has slowed but in many countries, it is heavily concentrated among corporates with large debt. This raises the risk of spikes in defaults as the operating environment for businesses deteriorates amid intensifying trade tensions between the US and China.

    17 Sep 2019|Moody's Investors Service
    The current US economic expansion, now in its 11th year, is the longest in American history. As growth slows and credit risks rise, market participants are increasingly interested in the potential length and severity of the default cycle in the next recession.