Moody’s Talks – Behind the Bonds

In this episode, we dissect the drivers of global light vehicle sales, automakers’ profit margins and the sector’s rapid electrification shift. Volume improvement will be most pronounced in Western Europe this year after the biggest drop-off on the war in Ukraine and associated supply chain difficulties. Sales in China will also be solid, with the unwinding of pandemic-related restrictions providi...

In this episode, we look at how companies that provide leisure and hospitality services like lodging, casinos, restaurants and cruises are faring. Our research shows that despite growing economic pressures and high inflation many consumers are still eager to splash the cash on entertainment and experiences. But which sectors and regions are likely to benefit the most from this post-pandemic buzz a...

Moody’s analysts discuss accelerating electric vehicle sales’ effects on US auto insurers and auto finance captives, and implications for state fuel taxes.   Speakers:  Matthias Heck, VP – Senior Credit Officer, Moody’s Investors Service; Inna Bodeck, VP – Senior Analyst, Moody’s Investors Service; Jasper Cooper – VP – Senior Credit Officer, Moody’s Investors Service; Ted Hampton, VP – Senior Cred...

In this episode, we examine the effects of rising interest rates on real estate operating companies and real estate investment trusts in two major regions – Europe and Asia-Pacific. In the former, higher rates have driven a deterioration in credit quality across the sector. And we expect commercial property values to decline in the coming months. On the other hand, business conditions are generall...

Investors have long seen the vast healthcare industry as a defensive sector. In good times and bad, consumers will still need everything from pharmaceuticals to medical devices to for-profit hospitals. But how strong is the healthcare industry today? Companies in all healthcare segments are wrestling with ongoing pressure to reduce costs from governments and private insurers alike. With a wave of...

Reduced supplies of natural gas and soaring prices stemming from Russia’s invasion of Ukraine are squeezing companies in Europe, which are also grappling with slowing economic growth, high inflation and rising interest rates. In the first segment of this podcast, we look at the effect of these stresses on European companies’ credit quality and the most vulnerable sectors. Then, at 9:35, we explain...

In this episode, we discuss our 2023 outlook for nonfinancial companies across the globe. We start with what's driving fundamental credit conditions in North America, EMEA, China, Latin America and Asia-Pacific excluding China, and how those drivers differ across the regions. Then, at 10:56 minutes, we take a deep dive into the consumer products sector and factors affecting demand next year for ev...

In this episode, we look into the two big drivers of credit quality for companies right now: interest rates and supply chains. Around the world, central banks have been raising interest rates in a bid to cool inflation. But higher interest rates can have a big effect on companies. Our study on US companies showed that rising rates will hit lower-rated companies particularly hard. Then, at 9:04 min...

The leveraged finance market – leveraged loans and high-yield bonds – has expanded considerably in recent years and now represents around $4 trillion in outstanding debt worldwide. In the first segment of this podcast, we look at how the tide of liquidity that helped the market grow so much is turning now and what tighter, pricier credit means for speculative-grade companies. Then, at 8:45 minutes...

The coronavirus pandemic has changed the way many of us work and live, and that has a huge effect on the real estate sector. In the first segment of this podcast, we discuss the global outlook for the real estate sector, the rising risks and the differences among regions. Then, at 9:07 minutes, we focus on the weaknesses in China’s property sector.  Guests: Thuy Nguyen, Vice President – Senior Ana...

If there’s one sector that affects virtually every other corporate sector you can think of, it’s energy—oil, fuel and natural gas. From food, to travel, to tech, costs and selling prices all depend in part on energy costs. And those energy costs have been through the roof in 2022, especially after Russia invaded Ukraine in February. High energy prices are good news for credit quality in the oil an...

What are the big challenges facing the pharmaceutical giants? Moody’s recently changed the outlook for the pharmaceutical industry to stable from positive because we expect lower earnings growth in the next 12-18 months, excluding COVID-19-related products, than we previously forecast because exposure to generic and biosimilar drugs competition will rise in 2023. In our second segment, starting at...

Russia’s invasion of Ukraine has put further stress on an auto supply chain already taxed by a shortage of key parts such as microchips. These supply disruptions, along with broader macroeconomic issues such as inflation, led us this month to cut our light vehicle sales growth estimates for 2022. Production bottlenecks will be largely resolved next year, but consumer demand may suffer because of i...

Russia’s invasion of Ukraine has raised questions about how companies’ credit quality will hold up if the conflict escalates. Some companies are set to benefit as commodity prices soar. But others are at risk from commodity price and supply-chain shocks, or financial and economic disruptions. Which companies and regions are most exposed and what do they have in common? And away from the conflict,...

Marina Albo of the Corporate Finance team explains that most companies’ direct exposure to Russia is low outside the energy sector, but indirect exposure – through energy and commodity costs and access – is widespread. Then Paolo Leschiutta outlines why operating profit growth is slowing for consumer products companies.  Related content on Moodys.com (some content only available to registered user...

Amid increased cyberattack risk, Marie Fischer-Sabatie and Matt Cahill discuss differences in cyber risk preparedness among hospitals, pharmaceutical companies and medical device manufacturers. Then Farah Zakir does the same for business and consumer service companies, and Jonathan Reid for companies in the chemicals and other basic commodities sectors. Related content on Moodys.com (some content...

Paloma San Valentin of the Corporates team discusses the impact of rising inflation on a wide range of global industries. Then, at 10.10 minutes,  Emile El Nems takes a closer look at how higher prices are affecting the US building sector.  Related content on Moodys.com (some content only available to registered users or subscribers):  Nonfinancial Corporates – US Cost pressures emerge as the next...

Jonathan Root and Pete Trombetta discuss the recovery prospects for the airlines, cruise and lodging sectors globally in 2022 amid Omicron and other disruptions. And Sandra Beltran explains how increased travel will benefit a range of entities in Latin America and the Caribbean this year.  Related content on Moodys.com (some content only available to registered users or subscribers):  Cruise  US:...

Ed DeForest, Richard Morawetz and Gloria Tsuen of the Corporates team discuss the stable outlooks for nonfinancial companies in the Americas, EMEA and Asia (ex Japan) in 2022, highlighting differences and risks among regions and sectors. And Christina Boni and David Beadle explain why Moody’s recently changed the outlook for both the European and US retail sectors back to stable from positive. Rel...

Our new corporate finance podcast series focuses on the market forces shaping credit across industries - from airlines to pipelines and computer chips to potato chips. In the inaugural episode, Annalisa Di Chiara, Richard Etheridge and Christina Padgett discuss the current credit trends in the higher-risk segment of the corporate debt market, highlighting regional differences.  And covenant specia...

On Moody’s Talks - Behind the Bonds, hosts Tania Hall and Jeff Pruzan join analysts from Moody’s corporate finance group worldwide to discuss the market forces shaping credit across industries - from airlines to telecoms and everything in between. These forces include the uneven recovery from the coronavirus pandemic, digital transformation, cyber risk, climate-change imperatives and much more. Pl...