Only three Moody’s-rated corporate issuers defaulted in September. The speculative-grade global corporate default rate fell to 2.6% for the trailing 12 months and will likely stabilize at 1.5%-1.7% in the first half of 2022, underpinned by our expectation that the economic recovery will continue and funding conditions will remain accommodative.
The People’s Bank of China is testing a digital version of the renminbi. If adopted on a widespread basis, the e-CNY, as it would be called, has the potential to strengthen banks' role in the e-payment system while also increasing competition for technology companies.
Stephen Tu, Melina Skouridou and Farooq Khan explain how four forces reshaping finance will likely reduce banks’ revenue from core activities and undermine their role as financial intermediaries. Plus, Alka Anbarasu explains why India’s banks will weather the stress from a COVID-19 resurgence, and Jasper Cooper gives an update on insured hurricane losses in the US.