The idiots just keep piling up. It is totally healthy that the markets gave up 4 years of growth in 1 month. 200 of the S&P 500 companies cannot pay interest on their debt. BUY BUY BUY
— john wieber (@johnwieber) March 25, 2020
…not the Fed or taxpayers please… t.co/RDnUvStFfJ
— George Goncalves (@bondstrategist) March 24, 2020
Moody’s Investors Service wants to let corporate-bond investors know one thing in no uncertain terms: Ratings actions are coming. And soon.
That is, if they haven’t already. The credit-rating company has already dropped dozens of companies in the past week, ever since it became clear that the double whammy of the coronavirus outbreak and the oil-price shock could decimate the outlook for certain industries. On March 17, it cut Lufthansa to Ba1, the highest speculative-grade rating, from Baa3, citing “a severe and extensive credit shock” from those two factors. One day later, Occidental Petroleum Corp. was similarly dropped to Ba1 from Baa3, making the crude oil and natural gas company the biggest “fallen angel” yet in this downgrade cycle. In a March 19 interview, Anne Van Praagh and Christina Padgett at Moody’s told me to expect to see more action in the next couple of weeks as analysts undertake a global review of ratings and go company by company through the sectors most at risk, like oil and gas, gambling, passenger airlines, restaurants and lodging.
Loans in freefall
More debt is needed pic.twitter.com/2uHNilu2St
— A.Urban (@AlessioUrban) March 25, 2020
I expect real estate will not be spared this time around. Too good for too long. Look at Brookfield AM, people don't remember that this was the former Brascan.
— Alan Dustin (@NextBullMarket) March 24, 2020
Fed reduces banks’ reserve ratio to zero starting Thursday, March 26 – Market Implications?
Banks don’t have to hold capital – so is there a bank run risk? pic.twitter.com/4QbMCoAEi3
— Samantha LaDuc (@SamanthaLaDuc) March 24, 2020
Remember this? The basic measure of banking stress?
11-year high and going vertical. New high today. pic.twitter.com/4F6kvODFnT
— Jim Bianco (@biancoresearch) March 24, 2020