More NewsNo Critical Change in Near-Term Bond Market Outlook – Report

No Critical Change in Near-Term Bond Market Outlook - Report

The interest rate tide has turned in the US, UK, and other regions, but does not signal critical change in the near-term bond market outlook, according to a report by Standard & Poor’s. Strengthening economic fundamentals and the steady decline in global default rates have helped to sustain investor risk appetite, said the rating agency. Global credit quality continued to moderate in the second quarter of 2004, with a decline in the downgrade ratio driven by a slight deceleration in downgrades and a small uptick in upgrades. ‘Positive rating trends are expected to continue as outlooks and CreditWatch listings display a reduction in negative bias,’ noted Diane Vazza, head of Standard & Poor’s Global Fixed Income Research Group. Notwithstanding modest corporate spreads, bond issuance activity took a hit in most regions relative to the high levels of 2003 as refinancing demands receded, said Standard & Poor’s. Even though the issuing environment remains favourable from a historical perspective, the pipeline for new issues will decelerate relative to 2003 as some corporations use internally generated funds for net new financing needs, noted the rating agency.

Related Articles

Infosys Finacle to power Santander UK’s international cash management system

More News Infosys Finacle to power Santander UK’s international cash management system

3w The Global Treasurer
Preparing for GDPR? Here’s four things to consider

More News Preparing for GDPR? Here’s four things to consider

4m Elliott Wiseman
Cash flow in focus for investors

Cash Management Cash flow in focus for investors

5m Conor Deegan
Treasury TV: Karen Pugsley, Domino's Pizza Group

More News Treasury TV: Karen Pugsley, Domino's Pizza Group

5m Victoria Beckett
Treasury TV: Yeng Butler compares US and European MMF reforms

Compliance Treasury TV: Yeng Butler compares US and European MMF reforms

5m Victoria Beckett
Treasury TV: Tim de Knegt, The Port of Rotterdam

10 Minutes With The Treasury Treasury TV: Tim de Knegt, The Port of Rotterdam

5m Victoria Beckett
Banks are selling clients short with short dated cash deposit U-turns

Banking Banks are selling clients short with short dated cash deposit U-turns

5m Victoria Beckett
What does sterling’s Brexit boost mean for UK manufacturers?

More News What does sterling’s Brexit boost mean for UK manufacturers?

6m Tasja Botha