Credit Market Pulse – February 2015
March 3, 2015 //
Welcome to the seventh issue of Credit Market Pulse, a publication for the credit risk industry that provides a holistic overview of the credit health of global capital markets.
In this issue, we look at global corporate credit risk conditions, with a particular focus on the automotive sector.
- With publicly listed auto manufacturers from Europe displaying record-low medial probability of default (PD) of 0.06%, they reveal greater credit strength than their US counterparts who have a higher average short-term credit risk of 0.19% PD
- We see a strong correlation between FX rates and relative credit risk: Auto manufacturers and suppliers from Europe and Japan exhibit lower credit risk than other industries within these regions. This coincides with a weak Yen and a sharply falling Euro versus the US dollar, boosting global demand for cars and motorcycles from these regions
- Energy companies still appear heavily in the highest PD list, representing a third of all entries in the regional lists. However, given a relative stability of the period measured, only one company appeared on the deterioration list
If you haven’t subscribed, and would like to receive this report direct to your inbox every other month, register your interest at www.spcapitaliq-credit.com/creditmarketpulse.