Fitch's 'Inside Credit': Strong Corporate Bond Issuance Driven By Low Interest Rates
28 March 2015 - 2:26AM
Business Wire
In the latest edition of Inside Credit, Fitch Ratings says
corporate bond issuance was off to a record start in 2015 due to
low interest rates, with volume registering $115.7 billion through
the end of February - an 18% increase over the first two months in
2012 and a 30% rise compared with 2014.
"Healthcare and pharmaceuticals contributed 17% of 2014 volume,
up from 10% in 2013. The fourth quarter accounted for 42% of the
sector's total issuance, led by Medtronic's $17 billion
transaction, the largest of the year. Energy, utilities and
infrastructure comprised 23% of the 2014 volume; however,
technology, media and telecom new volume fell 24% on a
year-over-year basis," said Eric Rosenthal, Fitch Ratings senior
director.
Other topics covered in this week's edition of Inside Credit
include:
--Basel proposals on credit risk are well-intended but
flawed;
--Private funds pose most systemic asset management risk;
--U.S. credit card ABS stable if rates rise slowly;
--Turkey's ratings affirmed at 'BBB-';
--Off-balance-sheet loans are still key risk for Chinese
banks;
--Brazil's midsized bank results show diversification is
key;
--India bank reforms are positive but face implementation
risks;
--German senior debt law would improve bank resolvability;
--Norway's low oil costs allow investment at US$55/bbl; and
--UK cyber security report flags insurers' important role.
'Inside Credit' is a weekly snapshot of Fitch Ratings'
noteworthy content, selected from all sectors and regions.
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ET, please sign up here:
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