by Megha Malhotra | Feb 14, 2022 | Financial News
S&P and Nasdaq saw a sharp sell-off, ending 1.9% and 2.8% lower on Friday. Sectoral losses were led by IT, Consumer Discretionary and Communication Services down 2.5-3.0%. With the risk-off sentient, the US 10Y Treasury yield dropped 8bp to 1.95%, just a day after...
by Megha Malhotra | Feb 14, 2022 | High Yield Bonds, Interest Rate Trends, Investment Grade Bonds
The US 10Y Treasury yield crossed 2% on Thursday, the first time since July 2019 after US inflation hit a 40Y high. US IG CDS spreads widened 5bp and HY CDS spreads widened 17bp during the week. Goldman notes that investors have now pulled out $15.8bn from US junk...
by Megha Malhotra | Feb 14, 2022 | Credit Ratings
Turkey was downgraded to B+ from BB- by Fitch with a negative outlook. Fitch cited high inflation, low external liquidity and weak policy credibility as reasons for the downgrade. The authorities’ lack of policy response in reducing inflation, including...
by Megha Malhotra | Feb 14, 2022 | Financial News, Sovereign Bonds, Sovereigns
A group of senior parliamentarians in Sri Lanka have called for an “orderly negotiated postponement” of outstanding foreign debt and corrective policy measures including a “strong social welfare scheme” as per The Hindu citing a collective statement on February 11....
by Megha Malhotra | Feb 14, 2022 | Credit Ratings
Sunac China was downgraded to B1 from Ba3 with a negative outlook and its senior unsecured ratings to B2 from B1 on the back of its “reduced liquidity buffer due to its constrained funding access and weakened operating cash flow”. Lower contracted sales...
