Markets

Bonds

European ‘zombie’ companies have three to six months' runway before defaults rise, says Aviva Investors

European ‘zombie’ companies have three to six months' runway before defaults rise, says Aviva Investors

Concern is growing over a likely spike in defaults among so-called ‘zombie’ companies that have stayed afloat during the coronavirus pandemic by relying on government stimulus and increasing their debt loads, but will struggle to keep servicing loans as government schemes roll back.

Exchanges

The World Federation Of Exchanges calls for considered approach to treatment of CCP equity in resolution

The World Federation Of Exchanges calls for considered approach to treatment of CCP equity in resolution

The World Federation of Exchanges, the global industry group for central counterparties (CCPs) and exchanges, has called for a careful and considered approach in any change to resolution arrangements at CCPs, as upsetting the tried and tested balance of incentives could damage stability and increase systemic risk.

Bonds

Breckinridge sees further tightening in US corporate debt spreads after wild bond market swings in H1

Breckinridge sees further tightening in US corporate debt spreads after wild bond market swings in H1

Fixed income managers have seen a hectic first half of the year in 2020. In the US, a typical year’s worth of new issues was printed in the space of just four months, as the onset of the pandemic forced companies to take urgent action to shore up their finances.