Moody’s Talks – Behind the Bonds

Industry Outlooks Turn Negative Amid Mounting Risks

podcasts@moodys.com (Tania Hall, Sven Reinke, Frederic Duranson, Tom Coghlan) — Tue, 24 Jun 2025 06:00:00 +0000

Our view of credit fundamentals – a mix of financial and business conditions – has turned increasingly negative across sectors. We examine why industries like airlines and retail are under strain, while others like aerospace and defense are staying afloat.

Hosts: Tania Hall, Senior Research Writer, Moody’s Ratings; Tom Coghlan, AVP-Research Writer, Moody’s Ratings

Guests: Sven Reinke, Managing Director, Corporate Finance Group, Moody’s Ratings; Frederic Duranson, Vice President - Senior Analyst, Corporate Finance Group, Moody’s Ratings

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How Data Centers Are Defying Growth Risks

podcasts@moodys.com (Louis Hau, John Medina, Ryan Wobbrock) — Wed, 7 May 2025 06:00:00 +0000

Increasing use of artificial intelligence (AI) is spurring massive investment in data centers, which could top $2 trillion in the next four years. But huge energy requirements and uncertainties over future computing needs may pose long-term credit risks to developers, landlords and investors.

Host: Louis Hau, Vice President - Senior Research Writer, Moody’s Ratings

Guests: John Medina, Senior Vice President, Moody's Ratings; Ryan Wobbrock, Vice President - Senior Credit Officer, Moody’s Ratings

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How ‘Disrupters’ Transform Credit Quality and Sectors

Wed, 16 Apr 2025 05:00:00 +0000

From Tesla to Netflix, innovative technologies and market-disrupting products are still grabbing the attention of consumers and investors. In a rapidly changing market environment, we look at how to identify true disrupters at an early stage and how their credit quality evolves. We’ll also dive into industries being shaken up by disruptions: new weight loss drugs in the pharmaceutical sector and the impact of AI startup DeepSeek on Chinese technology companies.

Hosts: Jeff Pruzan, VP, Senior Research Writer - Moody’s Ratings; Livia Yap, VP, Senior Research Writer - Moody’s Ratings

Guests: Peter Abdill, MD, Corporate Finance Group - Moody’s Ratings; Shawn Xiong, VP, Senior Analyst - Moody’s Ratings

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How US Tariffs Would Affect Business and Credit

podcasts@moodys.com (Jeff Pruzan, Paloma San Valentin) — Wed, 19 Mar 2025 08:00:00 +0000

US tariffs threaten a potential global trade war. Recent weeks have seen frequent shifts in US policy on tariffs as well as the announcement of counter moves from trade partners. What are the likely consequences for credit across different sectors of the US economy and more broadly across global markets?

Guest: Paloma San Valentin, Managing Director - North America Corporate Finance, Moody's’ Ratings

Host: Jeff Pruzan, Vice President, Senior Research Writer, Moody’s Ratings

To read more on this topic, visit the Behind The Bonds page on Moodys.com (some content only available to registered users or subscribers).

Related Research:

Private Credit set for major growth and new investor types

Tue, 11 Feb 2025 10:11:47 +0000

Moody’s first Private Credit Outlook predicts that this market will double by 2028 to more than $3 trillion of assets under management. Private credit should benefit from more volatile market conditions and from innovation which is attracting new kinds of customer but also generating new risks.

Later in the episode, we look in depth at the surge in retail investor involvement in private credit.

Guests: Marc Pinto, Managing Director, Corporate Finance Group, Moody’s Ratings; Christina Padgett, Associate Managing Director, Corporate Finance Group, Moody’s Ratings; and Alexandra Aspioti, Senior Analyst, Corporate Finance Group, Moody’s Ratings

Host: Tania Hall, Senior Research Writer, Moody’s Ratings

To read more on this topic, visit Behind The Bonds page on Moodys.com (some content only available to registered users or subscribers).

Related research:

Corporate outlooks for 2025 are now all stable as economic picture normalises

podcasts@moodys.com (Moody's Investors Service) — Tue, 10 Dec 2024 15:20:41 +0000

The outlooks for corporates in North America, Latin America, China, Asia-Pacific and EMEA are now all stable. We discuss the drivers shaping those outlooks and the similarities and differences across regions. Then we’re taking a deeper dive into the improving credit fundamentals for global leveraged finance next year as interest rates decline and defaults ease.

Guests: Paloma San Valentin, Managing Director - North America Corporate Finance , Moody’s Ratings and Jeanine Arnold, Senior Vice President – Senior Analyst – Corporate Finance Group, Moody’s Ratings

Host: Jeff Pruzan, Vice President – Senior Research Writer, Moody’s Ratings

To read more on this topic, visit Behind The Bonds page on Moodys.com (some content only available to registered users or subscribers).

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Massive AI investment contributes to positive global IT sector outlook

podcasts@moodys.com (Raj Joshi, Vincent Gusdorf, Jeff Pruzan) — Tue, 15 Oct 2024 07:00:00 +0000

In the opening segment, we discuss how a host of factors including substantial AI investment underpin our positive outlook for the global diversified information technology sector over the next 12-18 months. Then at 10 minutes, we assess which types of technology companies stand to benefit from all of this AI investment more than others.

Guests: Raj Joshi, Senior Vice President, Global Corporate Finance Group, Moody’s Ratings and Vincent Gusdorf, AMD - Digital Finance and AI Analytics, Moody’s Ratings.

Host: Jeff Pruzan, Vice President – Senior Research Writer, Moody’s Ratings

To read more on this topic, visit Behind The Bonds page on Moodys.com (some content only available to registered users or subscribers).

Related Research:

Green transition spurs M&A in mining sector, while competition increases deal prospects among US telecoms

podcasts@moodys.com (Tobias Wagner, Emile El Nems, Tania Hall) — Tue, 17 Sep 2024 08:00:00 +0000

M&A activity remains robust across corporate sectors, including pharmaceuticals, homebuilding, mining and telecommunications. In our opening segment, we focus in part on how the green transition is driving deals in the mining segment as companies look to control critical minerals used in renewable energy technologies. In our second segment (10:10), we delve into prospects, including M&A, for large US telecommunications and cable companies. Companies are increasingly battling for high-speed data customers, partly due to the boom in streaming video. Yet the market is saturated with little differentiating the services.

Guests: Tobias Wagner, Vice President – Senior Credit Officer, Global Corporate Finance Group, Moody’s Ratings and Emile El Nems, Vice President – Senior Credit Officer, Global Corporate Finance Group, Moody’s Ratings

Host: Tania Hall, Senior Vice President – Senior Research Writer, Moody’s Ratings

To read more on these topics, visit Moodys.com (some content available only to registered users or subscribers).

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Corporate credit quality in India, Indonesia remains robust despite sectoral differences

podcasts@moodys.com (sweta patodia, rachel chua, Vittoria Zoli) — Mon, 2 Sep 2024 19:20:33 +0000

India's large domestic market shields its companies from external shocks, whereas Indonesia's export-dependent commodity sector prompts government efforts to diversify growth.

Guests: Rachel Chua, VP-Senior Analyst; Sweta Patodia, AVP-Analyst

Host: Vittoria Zoli, Analyst, Credit Strategy & Guidance, Moody's Ratings

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Aerospace and defense outlook still positive but airplane manufacturers’ woes continue

podcasts@moodys.com (Frederic Duranson, Jonathan Root, Tania Hall) — Tue, 16 Jul 2024 13:26:18 +0000

This month our analysts are discussing what’s driving our still positive outlook for the global aerospace and defense sector for the next 12-18 months. Defense budgets are up as a result of rising geopolitical tensions and we expect strong operating profit for these companies. But persistent supply chain issues are delaying the delivery of new planes from the largest manufacturers Boeing and Airbus, even as air travel demand soars.

Guests: Frederic Duranson, Vice President – Senior Analyst - Corporate Finance Group, Moody’s Investors Service and Jonathan Root, Senior Vice President – Senior Analyst – Corporate Finance Group, Moody’s Ratings Service.

Host: Tania Hall, Senior Vice President – Senior Research Writer, Moody’s Investors Service.

To read more on this topic, visit Behind The Bonds page on Moodys.com (some content only available to registered users or subscribers).

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Rapid growth of weight-loss drugs will influence multiple sectors in coming years

podcasts@moodys.com (Michael Levesque, Linda Montag, Jeff Pruzan) — Tue, 18 Jun 2024 12:00:00 +0000

The pharmaceutical market has exploded in recent years with the rise of new drugs to help treat obesity and diabetes. The shift marks a huge opportunity for the pharmaceutical sector, which is pursuing the diabetes and obesity markets with four blockbuster drugs today: Ozempic and Wegovy from Novo Nordisk, and Mounjaro and Zepbound from Eli Lilly. In the first segment Mike Levesque looks at credit implications for the pharmaceutical industry, whose weight-loss drugs will generate some $80 billion in annual sales by 2030. Then at 11:10 minutes, Linda Montag discusses how the rise of the weight-loss drug segment will affect the packaged food, restaurant and packaging sectors.

Guests: Michael Levesque, Senior Vice President, Corporate Finance Group; Linda Montag, Senior Vice President, Corporate Finance Group.

Host: Jeff Pruzan, Vice President – Senior Research Writer, Moody’s Investors Service.

To read more on this topic, visit Moodys.com. (Some content available only to registered users or subscribers.)

Cross-Sector – Global: Growth in obesity drugs will affect multiple industries but impact will take years

Global commodities under pressure as China’s growth engine slows

podcasts@moodys.com (Hui Ting Sim, Jeff Pruzan) — Tue, 21 May 2024 14:18:47 +0000

The commodities sector isn’t looking rosy and that is largely due to the outsize influence of China, which is currently in the grip of an economic slowdown. These pressures come on top of geopolitical damage to trade and supply chains, and the energy transition which is increasing global appetite for some commodities and eroding it for others. Our analysts look in particular at the fortunes of steel and commodity chemicals – both of which are seeing plunging demand from China.

Later in the episode (at 12.49 mins) we also look more closely at gold. Investors are riding record highs for this very particular commodity, a traditional investment ‘safe haven’ whose idiosyncratic behaviour sometimes ignores the normal rules.

Guests: Hui Ting Sim, Associate Vice President – Corporate Finance Group, Moody’s Ratings; Mike Zhu, Vice President – Senior Analyst – Corporate Finance Group, Moody’s Ratings; Jamie Koutsoukis, Vice President – Senior Analyst – Corporate Finance Group, Moody’s Ratings

Host: Jeff Pruzan, Vice President – Senior Research Writer, Moody’s Ratings

To read more on this topic, visit the Macro Views page on Moodys.com (some content only available to registered users or subscribers). 

Global real estate prospects remain rocky

podcasts@moodys.com (lori marks, ana luz silva, tania hall) — Tue, 16 Apr 2024 12:24:06 +0000

The outlook for the global real estate market remains negative with the bumpy economy, tight financing conditions and the surge in remote work. In the US, we expect rental income growth for offices to remain poor overall and apartment income growth to moderate this year with supply up, mostly in parts of the Sunbelt. Globally, Japan is a bright spot with supply-demand dynamics in the commercial market relatively stable. In Europe, the commercial market remains at risk of further deterioration, but the UK is likely to recover quicker as asset prices have fallen at a faster pace.

Guests: Lori Marks, Vice President - Senior Credit Officer, Global Corporate Finance Group and Ana Luz Silva, Vice President - Senior Analyst, Global Corporate Finance Group

Host: Tania Hall, Senior Vice President - Senior Research Writer, Moody’s Ratings

To read more on this topic, visit Moodys.com (Some content available only to registered users or subscribers.):

Related Research:

Pace of electric vehicle sales hits several roadblocks

podcasts@moodys.com (Matthias Heck, Rene Lipsch, Jeff Pruzan) — Tue, 19 Mar 2024 06:00:00 +0000

In our opening segment, we discuss the slight slowdown in global market share growth for battery electric vehicles (BEVs) as some incentives to buy have ended, yet prices remain high. A scarcity of charging stations in Europe and the US also remains a deterrent for consumers. Our second segment, which starts at 9:40, focuses on the charging shortage and who will pay for expansion.

Guests: Matthias Heck, Vice President - Senior Credit Officer, Global Corporate Finance Group and Rene Lipsch, Vice President - Senior Credit Officer, Global Corporate Finance Group

Host: Jeff Pruzan, Vice President – Senior Research Writer, Moody’s Ratings

To read more on this topic, visit Moodys.com. (Some content available only to registered users or subscribers.)

Related Research:

Artificial intelligence has potential to transform many types of companies

podcasts@moodys.com (Tania Hall, Francesco Bozzano, Agustin Alberti) — Tue, 20 Feb 2024 10:02:33 +0000

Artificial Intelligence or AI is predicted to have a profound impact on many areas of business. In this episode of Behind the Bonds we assess where AI innovation is already showing significant potential. Which industries can expect to see improved productivity and what are the potential timelines for any positive impact on credit quality? We also discuss the disruptive potential of these new technologies and the risks to jobs.

Later in the episode our colleagues look in more depth at the media, where AI’s potential is presenting opportunities and generating both opposition and collaboration from content creators.

Guests: Francesco Bozzano, Vice President – Senior Analyst, Global Corporate Finance Group and Agustin Alberti, Vice President – Senior Analyst, Global Corporate Finance Group.

Host: Tania Hall, Senior Vice President – Senior Research Writer, Moody’s Investors Service.

To read more on this topic, visit Moodys.com. (Some content available only to registered users or subscribers.)

Related Research:

Regional Credit Outlooks for 2024

podcasts@moodys.com (Myriam Durand, Gloria Tsuen, Jeff Pruzan) — Tue, 16 Jan 2024 21:21:56 +0000

In 2024 we see an uneven picture for companies across the globe. For those in North America and Asia-Pacific, excluding China, the credit outlook is stable. But in Europe, the Middle East and Africa, and Latin America the outlook is negative. Driving this testing global environment are higher for longer interest rates which are raising the cost of borrowing and re-financing. This is a particular challenge for speculative-grade companies. Higher rates are also weighing on consumer demand in some sectors, particularly real estate.

Later in the episode at 11.30mins, our colleagues in Hong Kong take a closer look at prospects for companies in China, in recent decades the driver of the global economy, but facing a negative credit outlook for 2024.

Guests: Myriam Durand, Managing Director, Global Corporate Finance Group and Gloria Tsuen, Vice President, Senior Credit Officer, Global Corporate Finance Group.

Host: Jeff Pruzan, Vice President – Senior Research Writer, Moody’s Investors Service.  

To read more on this topic, visit Moodys.com. (Some content available only to registered users or subscribers.)

Links:

Global Outlook Segment

China Segment

Refinancing needs will intensify over the next three years, spurring issuance and defaults

podcasts@moodys.com (Chris Padgett, Jeanine Arnold, Tania Hall) — Tue, 12 Dec 2023 12:07:54 +0000

This year has been a very weak one for leveraged finance deals as aggressive global monetary tightening hit markets. In this episode we explain why we see a gradual improvement in 2024, with refinancings driving new issuance in the US and EMEA.

Guests: Chris Padgett, Associate Managing Director of North America Leveraged Finance Research and Jeanine Arnold, Senior Vice President of Leveraged Finance, EMEA.

Host: Tania Hall, Senior Vice President – Senior Research Writer, Moody’s Investors Service.

To read more on this topic, visit Moodys.com. (Some content available only to registered users or subscribers.)

Related Links:

2024 Outlook – Growing refinancing needs, higher-quality LBOs, will drive new issuance

Retailers look past inflation fatigue and high inventories, while conditions worsen for seaborne shipping

podcasts@moodys.com (Christina Boni, Mickey Chadha, Daniel Harlid, Tania Hall) — Tue, 21 Nov 2023 08:54:49 +0000

Retailers in North America and Europe are looking forward to another bustling holiday shopping season—but consumers may not be as eager this year as stores have hoped amid fairly high inflation, even with a strong labor market. Will 2024 get any better for retailers and makers of apparel? Later we look at the global transport sector—where container shipping continues to struggle, even while other modes of transportation look for improved earnings in 2024.

Guests: Christina Boni, Senior Vice President; Mickey Chadha, Vice President-Senior Credit Officer; and Daniel Harlid, Vice President-Senior Credit Officer, all from the Corporate Finance Group of Moody’s Investors Service.

Host: Tania Hall, Senior Vice President – Senior Research Writer, Moody’s Investors Service.

To read more on this topic, visit Moodys.com. (Some content available only to registered users or subscribers.)

Related Research:

Private lenders pile up cash, compete for LBOs, driving up risk

Tue, 17 Oct 2023 19:54:18 +0000

Private credit lenders built stores of capital that we expect will be put to work competing with banks to fund a new wave of leveraged buyouts. In the first segment of this episode, we discuss LBO competition and the risks it poses. Later, our guest lays out the concentration of private credit among a handful of giant asset managers building their own, largely self-contained lending ecosystems.

Guests: Christina Padgett, Associate Managing Director and Sandra Veseli, Managing Director, both from Moody’s Investors Service’s Corporate Finance Group; and Rory Callagy, Associate Managing Director, with Moody’s Financial Institutions Group.

Host: Jeff Pruzan, Vice President – Senior Research Writer, Moody’s Investors Service.

To read more on this topic, visit Moodys.com. (Some content available only to registered users or subscribers.)

Links:

Private Credit – Global: Syndicated and private lenders will spar as LBOs revive, upping systemic risk

Global information technology outlook remains stable; EU Chips Act will help semiconductor sector

podcasts@moodys.com (Raj Joshi, Dirk Goedde, Tania Hall) — Wed, 20 Sep 2023 19:50:32 +0000

Big technology companies have been on a wild ride over the past few years, with the pandemic-driven boom followed by an inevitable hangover as economic uncertainty loomed. In the first segment of this episode, we examine the outlook for the global diversified information technology sector over the next 12-18 months. Then at 10.02 we discuss how the European Chips Act will help the region’s semiconductor manufacturers in the face of stiff competition from other parts of the world.

Guests: Raj Joshi Senior Vice President and Dirk Goedde Vice President-Senior Analyst - Corporate Finance Group, Moody’s Investors Service.

Host: Tania Hall Senior Vice President – Corporate Finance Group, Moody’s Investors Service.

To read more on this topic, visit The Big Picture page on Moodys.com (some content only available to registered users or subscribers).

Blue skies ahead for airports and airlines as tourists take off

podcasts@moodys.com (Earl Heffintrayer, Joanna Fic, Jonathan Root, Jeff Pruzan) — Tue, 15 Aug 2023 08:44:05 +0000

Airlines and airports are benefitting from booming demand from leisure travellers as people take to the skies for a well-deserved summer holiday. In the first segment of this episode, we look at what’s driving strong passenger traffic volumes at US and European airports and what operational challenges lie ahead. And then we explore the tailwinds keeping our outlook for the global airline industry positive for the next 12-18 months.

Guests: Earl Heffintrayer, Vice President and Joanna Fic, Senior Vice President, both from Moody’s Investors Service’s Public Project and Infrastructure Finance Group; and Jonathan Root, Senior Vice President, Corporate Finance Group.

Host: Jeff Pruzan, Vice President – Senior Research Writer, Moody’s Investors Service.

To read more on this topic, visit Moodys.com. (Some content available only to registered users or subscribers.)

China’s soft economic recovery raises contingent liability risks from LGFVs

podcasts@moodys.com (Vittoria Zoli, Lillian Li, Jessie Tung) — Thu, 27 Jul 2023 09:17:01 +0000

Moody’s analysts discuss the economic and credit outlook for China, including the role of local government financing vehicles (LGFVs) and their debt burdens, and the latest on the property sector.

Speakers: Lillian Li, VP-Senior Credit Officer, Moody’s Investors Service; Jessie Tung, VP-Senior Credit Officer, Moody’s Investors Service

Host: Vittoria Zoli, Analyst – Emerging Markets, Moody’s Investors Service

Tech companies grapple with impact of US-China tensions; global IT services firms face revenue slowdown

podcasts@moodys.com (Zedric Cheung, Chenyi Lu, Farah Zakir, Tania Hall) — Tue, 18 Jul 2023 11:21:17 +0000

We explore the impact that geopolitical tensions between the US and China are increasingly having on technology companies, particularly the vital semiconductor supply chain. Which companies are most affected and what are the implications for China’s domestic semiconductor industry? Then at 9.58, we delve into what is supporting revenue growth for global information technology services companies, as growth slows from exceptionally high levels during the pandemic.

Guests: Zedric Cheung, Associate Analyst in the Credit Strategy and Standards Group, Moody’s Investors Service; Chenyi Lu, Vice President – Senior Credit Officer and Farah Zakir, Vice President – Senior Analyst both in the Corporate Finance Group, Moody’s Investors Service.  

Host: Tania Hall, Senior Vice President – Senior Research Writer, MIS Research, Moody’s Investors Service. 

To read more on this topic, visit the Behind the Bonds page on Moodys.com (some content only available to registered users or subscribers). 

Related Research:

What’s the outlook? And why global real estate has gone negative

podcasts@moodys.com (Ed DeForest, Lori Marks, Jeff Pruzan) — Tue, 20 Jun 2023 16:08:09 +0000

Our industry sector outlooks provide insight into the fundamental business and credit conditions that companies face. But what’s the picture across the 18 sector outlooks right now as macroeconomic conditions shift – which sectors are on the up and which face problems? At 10:35 we take a deep dive into an industry that is hitting the headlines: global real estate, where the sector outlook recently went negative. Financial conditions are tightening, the cost of capital is rising and property values are declining.

Guests: Ed DeForest, Senior Vice President, and Lori Marks, Vice President – Senior Credit Officer, both of the Corporate Finance Group, Moody’s Investors Service.

Host: Jeff Pruzan, Vice President – Senior Research Writer, Moody’s Investors Service.

China property outlook turns stable from negative; insurers and mortgage lenders face limited credit risk from the property sector

Wed, 17 May 2023 09:47:47 +0000

In this episode, we discuss China’s stabilizing property sales and improving funding conditions. Then at 9:00, we look at Chinese insurers’ and banks’ exposure to the country’s property sector.

Guests: Kelly Chen from the Corporate Finance Group of Moody’s Investors Service, and Qian Zhu and Yulia Wan from the Financial Institutions Group.

Host and Segment Leads: Tania Hall, Livia Yap and Danielle Reed from the Research team at Moody’s Investors Service.

To read more on this topic, visit the Behind the Bonds and Focus on Finance pages on Moodys.com (some content only available to registered users or subscribers).

Related Research:

Europe, China lead shift to battery electric vehicles; strong demand boosts battery makers' revenue

podcasts@moodys.com (Jeff Pruzan, Matthias Geck, Gerwin Ho) — Tue, 16 May 2023 09:30:34 +0000

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 providing a boost to the economy and consumers. Then at 6:45, we look into the growth prospects of electric vehicle battery makers that are powering the EV shift, as well as the risks they face from rapid expansion.

Guests: Matthias Heck and Gerwin Ho, both Vice President – Senior Credit Officers in the Corporate Finance Group, Moody’s Investors Service.

Host: Jeff Pruzan, Vice President – Senior Research Writer, MIS Research, Moody’s Investors Service.

To read more on this topic, visit the Behind the Bonds page on Moodys.com (some content only available to registered users or subscribers).

Related Research:

Hospitality remains bright spot despite high inflation; cinemas continue to struggle

podcasts@moodys.com (Michael Zuccaro, Adam McLaren, Fiona Knox, Tania Hall) — Tue, 18 Apr 2023 07:00:00 +0000

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 and how long will the party last? Then, at 8:22 minutes, we delve into the world of cinema where many operators are grappling with the credit effects of debt-funded investments made before the pandemic, subsequent shifts in the entertainment landscape and rising costs.

Guests: Michael Zuccaro, Vice President – Senior Analyst; Adam McLaren, Vice President – Senior Analyst; Fiona Knox, Vice President – Senior Analyst; all of the Corporate Finance Group at Moody’s Investors Service.

Host: Tania Hall, Vice President – Senior Research Writer, MIS Research, Moody’s Investors Service.

To read more on this topic, visit the Behind the Bonds page on Moodys.com (some content only available to registered users or subscribers). Related content:

Global electric vehicle surge is a bumpy ride for insurance, auto finance, state highway bonds

Wed, 12 Apr 2023 07:00:00 +0000

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 Credit Officer, Moody’s Investors Service

Hosts:

Nicholas Samuels, Senior Vice President, Moody’s Investors Service; Danielle Reed, VP – Senior Research Writer, Moody’s Investors Service

Related content on Moodys.com/autotransformation (may only be available to registered users or subscribers):

Rising interest rates are hurting real estate companies in Europe more than in Asia-Pacific

podcasts@moodys.com (Oliver Schmitt, Stephanie Lau, Yu Sheng Tay, Jeff Pruzan) — Tue, 21 Mar 2023 20:14:38 +0000

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 generally better in Asia-Pacific and valuations have held steady. At 11:50, we check in on the state of the market there, where China’s reopening is having positive spillover effects.

Guests: Oliver Schmitt, Vice President – Senior Credit Officer; Stephanie Lau, Vice President – Senior Credit Officer, Yu Sheng Tay, Analyst; all of the Corporate Finance Group at Moody’s Investors Service.

Host: Jeff Pruzan, Vice President – Senior Research Writer, Moody’s Investors Service.

To read more on this topic, visit the Behind the Bonds page on Moodys.com. (Some content available only to registered users or subscribers.)

Related research:

Efforts to force down costs have healthcare sector feeling unusually queasy

Tue, 21 Feb 2023 10:41:00 +0000

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 maturities slowly approaching, how strong is the threat of US healthcare company defaults? At 10:34 we cross the Atlantic to take a closer look at risks and opportunities this year for healthcare companies based in Europe.

Guests: Ola Hannoun-Costa, Corporate Finance Group, Associate Managing Director; Jean-Yves Coupin, Vice President – Senior Analyst; Marie Fischer-Sabatie, Senior Vice President; and Frederic Duranson, Vice President – Senior Analyst, all of the Corporate Finance Group at Moody’s Investors Service.

Host: Tania Hall, Vice President – Senior Research Writer, Moody’s Investors Service.

To read more on this topic, visit the Behind the Bonds page on Moodys.com. (Some content available only to registered users or subscribers.)

Related Research:

Energy shock strains European companies; US faces obstacles to increasing LNG supply and exports

podcasts@moodys.com (Jeff Pruzan, Ruosha Li, Elena Nadtotchi) — Tue, 17 Jan 2023 08:55:56 +0000

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 why the US will have trouble boosting its ability to export its abundant natural gas to Europe.

Guests: Ruosha Li, Assistant Vice President – Analyst, Moody’s Credit Strategy and Research and Elena Nadtotchi, Senior Vice President, Moody’s Corporate Finance Group, both of Moody’s Investors Service.

Host: Jeff Pruzan, Vice President – Senior Research Writer, Moody’s Investors Service.

To read more on this topic, visit the Behind the Bonds page on Moodys.com. (Some content available only to registered users or subscribers.)

Related research:

2023 outlook is negative for most regions as growth and consumer demand slows

podcasts@moodys.com (tania hall, myriam durand, linda montag) — Thu, 1 Dec 2022 09:07:52 +0000

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 everything from toilet paper to tobacco, beauty to beverages.

Guests: Myriam Durand, Managing Director, and Linda Montag, Senior Vice President, both of the Corporate Finance Group, Moody’s Investors Service.

Host: Tania Hall, Vice President - Senior Research Writer, MIS Research, Moody’s Investors Service.

To read more on this topic, visit The Credit Cycle Turns page on Moodys.com (some content only available to registered users or subscribers).

Interest rates and supply chain problems continue to drive credit risks

podcasts@moodys.com (Jessica Gladstone, Mariarosa Verde, Tania Hall) — Tue, 22 Nov 2022 08:50:58 +0000

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 minutes, we examine the reasons for supply chain problems that have persisted since the covid pandemic’s peak. A combination of factors is making supply chain planning even more difficult right now. Inventory management, labor shortages and extreme weather events have become critical issues.

Guests: Jessica Gladstone, Associate Managing Director, and Mariarosa Verde, Senior Vice President, both of the Corporate Finance Group, Moody’s Investors Service.

Host: Tania Hall, Vice President - Senior Research Writer, MIS Research, Moody’s Investors Service.

To read more on this topic, visit The Credit Cycle Turns page on Moodys.com (some content only available to registered users or subscribers).

Liquidity tightens for leveraged finance market, raising corporate default risk

Wed, 26 Oct 2022 12:05:32 +0000

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, we examine the role of private equity firms in this market and the risks for companies they own.

Guests: Sandra Veseli, Managing Director; Annalisa Di Chiara, Senior Vice President; Chris Padgett, Associate Managing Director; Evan Friedman, Senior Vice President/Manager, all of Moody’s Investors Service Corporate Finance Group.

Host: Jeff Pruzan, Vice President – Senior Research Writer, Moody’s Investors Service.

To read more on this topic, visit Moodys.com. (Some content available only to registered users or subscribers.)

Global leveraged finance – Cross Region: Evaporating issuance will erode liquidity cushions, igniting defaults
Leveraged Finance – North America and EMEA: Private equity has more options to preserve returns, most at creditors' expense
As global liquidity tide goes out, risks are rising for leveraged companies

Risks are rising for real estate globally; China’s property sector continues to struggle

podcasts@moodys.com (Thuy Nguyen, Franco Leung, Tania Hall) — Tue, 20 Sep 2022 07:50:00 +0000

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 Analyst and Franco Leung, Associate Managing Director, both of Moody’s Investors Service Corporate Finance Group.

Host: Tania Hall, Vice President – Senior Research Writer, Moody’s Investors Service.

To read more on this topic, visit Moodys.com (some content available only to registered users or subscribers).

Oil and gas companies reap credit benefit of high energy prices; Europe faces gas crisis

Tue, 16 Aug 2022 15:48:47 +0000

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 and gas industry. But, as we discuss in our second segment starting at 08:05, the military conflict in Ukraine has also laid bare how much Europe depends on Russia for energy. In recent months, Russia has significantly reduced natural gas deliveries to Europe, leading already-high prices to soar and hindering Europe’s economic recovery from the coronavirus pandemic shock.

Guests: Elena Nadtotchi, Senior Vice President, Corporate Finance Group, Moody’s Investors Service, Matthias Hellstern, Managing Director, Corporate Finance Group, Moody’s Investors Service and Laura Perez Martinez, Associate Managing Director, Credit Strategy and Research, Moody’s Investors Service.

Host: Jeff Pruzan, Vice President - Senior Research Writer, MIS Research, Moody’s Investors Service.

To read more on this topic, visit the Oil & Gas topic page and The Russia-Ukraine Crisispage on Moodys.com (some content only available to registered users or subscribers).

Pharmaceuticals earnings growth to slow; the patent cliff could spur M&A

podcasts@moodys.com (Frederic Duranson, Michael Levesque, Tania Hall) — Tue, 19 Jul 2022 08:29:27 +0000

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 08:50, we look at how a number of big pharma companies face patent expiries for blockbuster drugs in the coming years. What consequences will that have for their credit quality and the prospects for M&A?

Guests: Frederic Duranson, Vice President – Senior Analyst, Corporate Finance Group, Moody’s Investors Service, and Michael Levesque, Senior Vice President, Corporate Finance Group, Moody’s Investors Service.

Host: Tania Hall, Vice President - Senior Research Writer, MIS Research, Moody’s Investors Service.

Military conflict strains automakers; electrification reshapes global auto market

podcasts@moodys.com (Mattias Heck, Gerwin Ho, Mariko Semetko, Tania Hall) — Tue, 21 Jun 2022 08:06:09 +0000

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 inflation. A bright spot for the auto sector is the fast growth of the electrified vehicle market, especially in China and Japan.

Guests: Matthias Heck, Gerwin Ho and Mariko Semetko, all of whom are Vice President – Senior Credit Officers in Moody’s Investors Service Corporate Finance Group.

Host: Tania Hall, Vice President – Senior Research Writer, Moody’s Investors Service.

To read more on this topic, visit the Automotive page on Moodys.com. (Some content is available only to registered users or subscribers.)

Russia-Ukraine conflict brings risks and opportunities

podcasts@moodys.com (Emile El Nems, Carlos Winzer, Jeff Pruzan) — Tue, 17 May 2022 08:10:09 +0000

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, global telecoms companies are stepping up investment in 5G – the fifth generation of network technology. It’s new, it’s a little puzzling, and it’s expensive for the companies that need to adapt to it—and for now at least it’s not clear how they’ll get a return on their investment.

Guests: Emile El Nems, Vice President – Senior Credit Officer, Corporate Finance Group, Moody’s Investors Service, and Carlos Winzer, Vice President, Corporate Finance Group, Moody’s Investors Service.

Host: Jeff Pruzan, Vice President - Senior Research Writer, MIS Research, Moody’s Investors Service.

To read more on this topic, visit The Russia-Ukraine Crisis page on Moodys.com (some content only available to registered users or subscribers).

Ukraine-Russia crisis hits array of companies globally; consumer products outlook moves to stable from positive

podcasts@moodys.com (Tania Hall, Richard Barley, Marina Albo, Paolo Leschiutta) — Wed, 6 Apr 2022 07:45:00 +0000

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 users or subscribers):

Exposure to cyber risk and ability to address it vary across healthcare, services and commodities sectors

Tue, 15 Mar 2022 16:51:48 +0000

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 only available to registered users or subscribers):

Rising inflation poses a challenge for many companies around the world

Tue, 15 Feb 2022 08:45:00 +0000

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):

Release of pent-up travel demand will benefit airlines and hospitality

Thu, 20 Jan 2022 08:45:00 +0000

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):

GDP and earnings growth support stable regional corporate credit outlooks; drivers of stable outlooks for US, Europe retail differ

Wed, 1 Dec 2021 18:21:06 +0000

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.

Related content on Moodys.com (some content only available to registered users or subscribers):

Pandemic has altered landscape for speculative-grade companies and creditor protections

Mon, 15 Nov 2021 10:00:00 +0000

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 specialist Evan Friedman explains how changing market conditions contribute to weaker creditor protections.

Related content on Moodys.com (some content only available to registered users or subscribers):

EP 0 Title - Moody’s Talks – Behind the Bonds Trailer

podcasts@moodys.com (Jeff Pruzan, Tania Hall) — Wed, 20 Oct 2021 14:17:18 +0000

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. Please join us as we connect the dots on corporate credit quality.