Negative Rates Series

Moody's: Negative interest rates hurt some European CLOs, have little impact on US CLOs

May 11, 2016 23:23 pm UTC| Research & Analysis

Negative Euribor levels pose risks to European CLOs that do not have sufficient mitigants in place to deal with negative interest rates through asset- or liability-level interest rate floors, says Moodys Investors...

FX Hedging Strategy Series

FxWirePro: Hedge USD/MXN via diagonal call spreads amid inflationary uncertainties

May 11, 2016 05:56 am UTC| Research & Analysis Insights & Views

Mexican CPI data for April printed on Monday at 2.54% y/y, with the m/m measure printing at -0.32%. Whilst the data were slightly below expectations, whats clear is that inflation trends in Mexico are hardly robust,...

Moody's: Australian major banks face increased challenges for rest of 2016

May 11, 2016 01:31 am UTC| Research & Analysis

Moodys Investors Service says that Australias four major banks face a moderate weakening in asset quality and a slowdown in earnings growth over the rest of 2016. More difficult operating conditions have become...

Briferendum Series

FX Hedging Strategy Series

Poll shows most UK listed firms hedging for pound to fall on Brexit

May 10, 2016 23:58 pm UTC| Research & Analysis

Reuters reported that four-fifths of Britains major companies have taken steps to hedge against the risk that a vote to leave the European Union will knock more than 10 percent off the value of sterling, a pollof almost...

Fitch Downgrades Six Brazilian Subnationals; Outlook Negative

May 09, 2016 23:26 pm UTC| Research & Analysis

Fitch Ratings has downgraded the states of Sao Paulo, Santa Catarina and Paranas Issuer Default Rating (IDR) to BB from BB+. Fitch has also downgraded the ratings for the cities of Sao Paulo and Rio de Janeiro to BB from...

Moody's: European legislative developments and global resolution framework implementation impact creditor hierarchies, increase complexity

May 05, 2016 23:51 pm UTC| Research & Analysis

A number of developments, particularly in Europe, have affected the rank ordering of bank liabilities within creditor hierarchies, said Moodys Investors Service. The ratings agency said these changes are reflected in its...

Moody's: UK banks face increased funding costs and challenges to operating models amid uncertainty around Brexit vote

May 05, 2016 06:23 am UTC| Research & Analysis

Banks operating in the UK face moderate short-term risks as the country approaches the June 23 Brexit referendum, says Moodys Investors Service in a report published today. In addition, in the event of a Brexit, banks will...