High-yield debt is grabbing the headlines again. This blog has picked HY as its potential ‘canary in the coal mine’ – but is it about to stop chirping? This week I’ve picked out three charts that highlight the risks and two that suggest HY debt has a song or two to sing yet.
Private equity firms are on track to raise record funds. Big deals are on the cards and debt markets are open to fund them. Nevertheless, there are new challenges on the horizon – some of which stem from this record fundraising and others from the digital revolution that will affect not only what private equity buys, … More Private equity: comeback or comedown?
The OPEC deal announced last week helped to propel the price of a barrel of Brent Crude over the $50 mark, the highest for well over a year and almost double its January low. But prices have stalled since, underlining our view that this isn’t a one way ticket. So where next for oil?
The bad news first: we start the second quarter with dark clouds gathering. The ECB has pulled out negative rates as its last available weapon to re-energise European economies. UK GDP growth forecasts have been revised downward again. Many companies are complaining of the most difficult trading conditions since the credit crisis. There’s talk of … More Defaults and dislocation
Global equities reached an eight week high this week. In the way this works now, this is partly because of some good news and also because of some bad news that becomes good news because it’s raised hopes for further/continued stimulus. While we all ponder how on earth we got into this confused state, here … More Hopes and fears in six charts
Market sensibility means we have to take a deeper dive into the underlying data to get a clearer understanding of what’s going on. We find that corporate sense is keeping M&A in fashion, debt markets are beginning to show the strain in places and it’s all about windows…..
..but while there’s liquidity, spare cash and romance let’s face the market and transact! The prevailing corporate attitude in 2015 was to fight disruptive forces, low growth and uncertainty by transforming the portfolio and building resilience. Our base case for 2016 is that companies will face similar challenges, turned up a notch. There’s an air … More Previewing 2016: There may be trouble ahead…