Shows
Gordon Kerr's Credit Compass: Navigating European Credit MarketsTarriff Tantrum and European Default ExpectationsIn this episode of Credit Compass, Gordon Kerr, KBRA’s European Macro Strategist, discusses the global market reaction to the announcement of US tariffs, with an emphasis on Europe’s response. Gordon also interviews two of his colleagues from KBRA DLD (a division of KBRA Analytics) about their launch of a European default index in private credit. Learn more about your ad choices. Visit megaphone.fm/adchoices
2025-04-0910 min
Gordon Kerr's Credit Compass: Navigating European Credit MarketsEuropean Energy – Here We Go Again?In this episode of Credit Compass, Gordon Kerr, KBRA’s European Macro Strategist, holds a lively and timely discussion about energy with KBRA analysts Karim Nassif, from the Project Finance and Corporate Ratings team, and Ken Egan, from the Sovereigns team. Prices have been rising this year as Europe faces a cold winter and constrained supply markets. Learn more about your ad choices. Visit megaphone.fm/adchoices
2025-02-2614 min
Gordon Kerr's Credit Compass: Navigating European Credit MarketsInterest Rates, Inflation, and InaugurationCredit Compass—a new podcast from KBRA’s European Macro Strategist, Gordon Kerr—will guide listeners through the complexities of European credit and capital markets from a macro perspective. Whether you’re a market professional, an investor, or just curious about credit market dynamics, Credit Compass will keep you informed and ahead of the curve. In this inaugural podcast episode, Gordon is joined by KBRA’s Chief Strategist, Van Hesser, as they assess turbulence in European bond markets, foreign exchange trends, and the ripple effects of Trump’s proposed tariffs and other political developments. Learn more about y...
2025-01-1510 min
Conversations in European CreditA Great MigrationIn this episode, KBRA’s European Macro Strategist Gordon Kerr concludes Conversations in European Credit and highlights the launch of his new KBRA podcast, Credit Compass: Navigating European Credit Markets. The new podcast will serve as a guide for navigating the complexities of European credit and capital markets from a broader macro perspective. It will offer valuable insights and analysis to help investors stay informed and ahead of market trends. Be sure to convert your subscription to the new podcast.
2025-01-0902 min
Conversations in European CreditSolar ABS LaunchIn this episode of Conversations in European Credit, KBRA Head of European Research, Gordon Kerr, speaks with Killian Walsh and Karl Cummins from KBRA’s ABS ratings team about the introduction of a new collateral type to European securitisation markets: solar photovoltaic loans. Their conversation covers a discussion about the KBRA-rated transaction—Enpal’s Golden Ray—and the potential future development of the market. The rating report and research can be found on kbra.com.
2024-11-2111 min
Conversations in European CreditSynthetic Risk Transfer—A Growing Bank Capital ToolIn this episode of Conversations in European Credit, KBRA Head of European Research, Gordon Kerr, speaks with Killian Walsh from KBRA’s ABS ratings team. Their discussion highlights the active use of an important bank capital tool: synthetic risk transfer transactions. These products have developed as an active market in Europe but are also a growing tool in the US. The content for the conversation is based on a recently published research report that can be found on kbra.com.
2024-10-3115 min
Conversations in European CreditUK Specialist LendersIn this episode of Conversations in European Credit, KBRA Head of European Research, Gordon Kerr, speaks with Kali Sirugudi from KBRA’s RMBS ratings team. Their discussion highlights the growing specialist lender market in the UK and the use of securitisation markets for funding. Can the market continue to grow? Kali and Gordon outline the various niches that these lenders have stepped into and the challenges they face to continue to grow. The content for the conversation is based on a recently published research report that can be found on kbra.com.
2024-10-1123 min
Conversations in European CreditEuropean Bank HealthIn this episode of Conversations in European Credit, KBRA Head of European Research, Gordon Kerr, speaks with Asia Drobnik from KBRA’s financial institutions ratings team. The discussion outlines the current health of the European banking system as banks prepare for the final implementation of Basel IV regulations. The conversation draws on a recently published research on kbra.com.
2024-08-2215 min
Conversations in European CreditEuropean Securitisation RevivalIn this episode, KBRA’s Head of European Research, Gordon Kerr, speaks with colleague Paul De Lange, from the Investor Relations team. The conversation focuses on the strong levels of issuance in the European securitisation market during first-half (1H) 2024, with volumes reaching their highest levels since 1H 2007. To help put the strong performance into perspective, Gordon and Paul cite a recent KBRA research report which showed, among other findings, that transactions sold to investors surged during Q2 and newly circulated transaction volumes broke a post-global financial crisis record.
2024-07-2512 min
Conversations in European CreditOffshore Wind in IrelandIn this episode, Gordon Kerr, Head of European Research, speaks with Karim Nassif from KBRA’s project finance and corporate ratings team. The discussion outlines the proposed development of offshore wind in Ireland, which has outlined ambitious plans to deliver 20GW by 2040. The content for the conversation is based on a recently published research report that can be found on kbra.com.
2024-07-0317 min
Conversations in European CreditEuropean CLOs—Too Big to Hold?In this episode, Gordon Kerr, KBRA Head of European Research, speaks with Gabriele Gramazio from KBRA’s Structured Credit ratings team. Gabriele and Gordon discuss the large exposures held within European CLOs and the idiosyncratic risks associated with leveraged loans across the market. The conversation focuses on the content from a recently published research report that can be found on kbra.com.
2024-06-2014 min
Conversations in European CreditKBRA’s Securitisation Investor Survey and Sentiment IndexIn this episode, Gordon Kerr, Head of European Research, engages in an interesting conversation moderated by Luigi Griffo from KBRA’s European Investor Relations team. Gordon comments on the recently published results from KBRA’s fifth European Securitisation Survey. The conversation focuses on aggregated investor responses and the resulting views for the direction of the market in the second half of the year. The full research report can be found on kbra.com.
2024-06-0618 min
Conversations in European CreditMacro Special: European Labour MarketIn this special episode of Conversations in European Credit dedicated to macro themes, Ken Egan from KBRA’s Sovereign Ratings team connects with KBRA Head of European Research, Gordon Kerr, to discuss the European labour market—where expectations have changed, where they are going, and their implications. KBRA’s continued mission to help illuminate the many trends taking shape across the markets are highlighted in these special episodes as Gordon and Ken discuss and share insights on the next “big thing” emerging from the sea of opinions. Further details on KBRA’s views may be found on kbra.com.
2024-05-3020 min
Conversations in European CreditUK Building Societies Face Ongoing ChallengesIn this episode of Conversations in European Credit, Asia Drobnik from KBRA’s Financial Institutions ratings team, Ken Egan from KBRA’s Sovereign ratings team, and Kali Sirugudi from KBRA’s Residential Mortgage-Backed Securities ratings team sit down with KBRA Head of European Research Gordon Kerr to discuss the UK building societies. Asia, Ken, and Kali highlight the challenges within the UK economy and housing market and how these are managed by the building society sector. Further details on KBRA’s views may be found on kbra.com.
2024-05-1621 min
Conversations in European CreditLaunch of European Auto ABS IndicesIn this episode of Conversations in European Credit, Karl Cummins and Killian Walsh from KBRA’s Asset-Backed Securities ratings team sit down with KBRA Head of European Research, Gordon Kerr, to discuss the launch of KBRA’s European Auto ABS performance indices. Killian, Karl, and Gordon outline the creation of these indices and the coverage they offer. The new European indices complement our collection of monthly credit indices focused on US credit performance in the auto, marketplace consumer, solar, residential mortgage, and equipment loan/lease sectors. Further details on KBRA’s views may be found on kbra.com.
2024-05-0211 min
Conversations in European CreditIrish Mortgage and Housing TrendsIn this episode of Conversations in European Credit, Kali Sirugudi from KBRA’s Residential Mortgage-Backed Securities ratings team sits down with KBRA Head of European Research, Gordon Kerr, to examine the housing and mortgage market in Ireland. Kali and Gordon discuss how this market faces challenges ahead despite making significant progression over the past 10 years after enduring the consequences of the global financial crisis. Further details on KBRA’s views may be found on kbra.com.
2024-04-1816 min
Conversations in European CreditMind the European CLO Amortisation GapIn this episode of Conversations in European Credit, Gabriele Gramazio from KBRA’s Structured Credit ratings team sits down with KBRA Head of European Research, Gordon Kerr, to discuss the increasing number of CLOs reaching the end of their reinvestment periods. Since these securities have begun to amortise, Gabriele and Gordon examine how the rate they pay down is influenced by a number of factors. Further details on KBRA’s views may be found on kbra.com.
2024-04-0416 min
Conversations in European CreditMacro Special - Interest RatesIn this special episode of Conversations in European Credit dedicated to macro themes, Ken Egan from KBRA’s Sovereign Ratings connects with KBRA Head of European Research, Gordon Kerr, to discuss interest rates—where expectations have changed, where they are going, and their implications. KBRA's continued mission to help illuminate the many trends taking shape across the markets are highlighted in these special episodes as Gordon and Ken discuss and share insights on the next “big thing” emerging from the sea of opinions. Further details on KBRA’s views may be found on kbra.com.
2024-03-2115 min
Conversations in European CreditGeopolitics and Energy MarketsIn this episode, Ken Egan from KBRA’s Sovereign Ratings team and Karim Nassif from KBRA’s European Corporates team engage with Gordon to discuss the influence of geopolitics on energy markets. Gordon, Ken, and Karim outline the impact of geopolitical tensions on energy and shipping, as well as the potential effect on European corporates. Further details may be found on kbra.com.
2024-03-0713 min
Conversations in European Credit2024 European Structured Finance Sector Outlook: Turbulence Ahead (Episode 2 of 2)In this episode, the second of two episodes on the topic, Gordon Kerr, Head of European Research engages in a conversation with several of KBRA’s European analysts on the Outlook for European securitisation in 2024. Gordon is joined by Killian Walsh from KBRA’s European ABS ratings team, Karl Cummins, also from KBRA’s European ABS ratings team, and Gabriele Gramazio from the European structured credit team. The conversation focuses on the European securitisation market, with a focus on potential issuance levels as well as how performance is likely to evolve in the ABS and CLO markets in 2024. The sector...
2024-01-1118 min
Conversations in European Credit2024 European Structured Finance Sector Outlook: Turbulence Ahead (Episode 1 of 2)In this episode, the first of two episodes on the topic, Gordon Kerr, Head of European Research engages in a conversation with several of KBRA’s European analysts on the Outlook for European securitisation in 2024. Gordon is joined by Ken Egan from the European Sovereigns team at KBRA, Kali Sirugudi from the European RMBS ratings team, and Caitlin Parrella from the European CMBS ratings team. The conversation focuses on the European securitisation market, with a focus on the economic environment and the RMBS and CMBS sectors, including how performance is likely to evolve in 2024. The sector outlook report published by...
2024-01-0420 min
Conversations in European CreditSurvey Reveals Potentially Positive 2024 for European Securitisation MarketsIn this episode, Gordon Kerr, Head of European Research, engages in an interesting conversation with himself. Moderated by Luigi Griffo from KBRA’s European Investor Relations team, Gordon comments on the recently published survey results from KBRA’s fourth European Securitisation survey. The conversation focuses on aggregated investor responses and the resulting views for the direction of the market in the new year. The full research report covering the survey as well as KBRA’s own views on the outlook for the market in 2024 can be found on kbra.com.
2023-12-1913 min
Conversations in European CreditCorporate Margins, Diverging Resilience, and Challenges in 2024In this episode, Gordon Kerr, Head of European Research at KBRA, engages in a topical conversation with Fabio Di Giansante, Head of Large Cap European Equities at Amundi, and Karim Nassif from KBRA’s European Corporates team. The three discuss the European corporate sector, the impact cost inflation and rate hikes have had on performance, and how this environment will likely evolve in 2024. Amundi is the largest asset management firm in Europe, with over EUR2 trillion in assets under management, and Fabio provides his insight into the direction of the market. A recent KBRA research report highlights some of the...
2023-12-0620 min
Conversations in European CreditBattery Electric Vehicles Ready for a Recharge?In this episode, Head of European Research Gordon Kerr discusses the growth in alternative fuel passenger vehicles and secondhand values with members of the European ABS ratings team. Gordon engages in a conversation with Karl Cummins and Christopher Noonan about the current state of used vehicle values in the UK and European Union. A recent KBRA research report outlines the challenging market for battery powered vehicles in greater detail, which can be found on kbra.com.
2023-11-0919 min
Conversations in European CreditStrength of Well-Established Private Equity and Private Credit ManagersIn this episode, Gordon Kerr, Head of European Research discusses the resilient profiles of KBRA rated asset managers, with members of the KBRA Financial Institutions ratings team; Asia Drobnik, Claudia McPherson, Leah Hallfors, and Patricia Cantwell. Gordon engages in a conversation with the team about the private equity and private credit firms under KBRA’s rating coverage and their ability to weather current market conditions. KBRA’s report on the topic in greater detail can be found on kbra.com.
2023-10-1920 min
Conversations in European CreditEuropean Employment DynamicsIn this episode, Gordon Kerr, Head of European Research discusses the current situation in the European employment market with Ken Egan from the KBRA sovereign ratings team. Gordon engages in a conversation with Ken about the current employment market in Europe and the challenges that the current tight labour market situation presents to economies and markets. KBRA’s report on the topic in greater detail can be found on kbra.com.
2023-10-0510 min
Conversations in European CreditLater Life LendingIn this episode, Gordon Kerr, KBRA’s Head of European Research, discusses the equity release (or reverse mortgage) sector with his colleagues Kali Sirugudi, Managing Director, and Ed DeVito, Senior Managing Director, from the RMBS team. They discuss the growth of the sector in UK, Europe, and the US, as well as the challenges of analysing the product. KBRA’s reverse mortgage methodology and reports covering all three regions can be found on kbra.com.
2023-09-2118 min
Van Hesser's 3 Things in Credit - A KBRA PodcastBiggest Risks, Big Tightening, and Default ForecastThis week, our 3 Things are: 1. The biggest risks to credit. 2. Banks + Fed. A rare, one-two tightening force. 3. KBRA DLD default forecast. Eric Rosenthal joins to elaborate.
2023-08-0413 min
Conversations in European CreditUK Buy-to-Let Refinancing ChallengesIn this episode, Gordon Kerr, Head of European Research discusses the UK Buy-to-Let mortgage sector and the challenges it faces as interest rates rise. Gordon engages with KBRA’s Kali Sirugudi from KBRA’s RMBS team in a conversation about the challenges faced by landlords as they face refinancing challenges amongst other changes. A copy of the full report can be found on kbra.com.
2023-07-2023 min
Conversations in European CreditEuropean Securitisation Survey and Global ABSIn this episode, Gordon Kerr, KBRA’s Head of European Research, discusses our latest European Securitisation Survey, which polls structured finance investors about their views and expectations regarding the market, as well as the Global ABS 2023 conference. Gordon talks to Luigi Griffo from KBRA’s investor relations team about the survey’s results, what they say about 2H 2023, and how they relate to themes from the recent industry conference. The full survey report can be found on kbra.com.
2023-06-2916 min
Conversations in European CreditGreening of European Auto ABSIn this episode, Gordon Kerr, Head of European Research discusses the European Auto securitisation market as it accelerates towards the use of green collateral. Gordon engages with KBRA’s Karl Cummins from KBRA’s European ABS ratings team in a conversation about the sales of low carbon powered vehicles and their growing presence in European securitisations. A copy of the full report can be found on kbra.com.
2023-06-1515 min
Conversations in European CreditEuropean Green Industrial PlanIn this episode, Gordon Kerr, Head of European Research discusses the European Green Industrial Plan. Gordon engages with KBRA’s Emilie Nadler from KBRA’s environmental, social and governance team and Karim Nassif from KBRA’s project finance and corporate ratings team in a conversation about the introduction of these intentions from the European Commission and their potential credit implications. A copy of the full report can be found on kbra.com.
2023-06-0113 min
Conversations in European CreditIncreasingly Difficult Times Ahead for UK Building SocietiesIn this episode, Gordon Kerr, KBRA’s Head of European Research, examines UK building societies and the increasingly challenging environment they face. Gordon discusses this topic with Asia Drobnik from KBRA’s financial institutions ratings team and Kali Sirugudi from its RMBS team, touching on inflation, house prices, mortgage lending, interest rates, and how well the building societies can cope with rising headwinds. A copy of the full report can be found on kbra.com.
2023-04-2717 min
Conversations in European CreditInterest Rates Leave Mark on Dutch Housing MarketIn this episode, Gordon Kerr, KBRA’s Head of European Research, discusses the impact of rising interest rates and affordability of mortgage lending on the Dutch housing market. He is joined by Kali Sirugudi, from KBRA’s residential mortgage-backed securities team. The analysts debate house prices, mortgage lending, interest rates, and the ongoing performance of the Netherlands’ housing market. A copy of the full report can be found on kbra.com.
2023-04-1311 min
Conversations in European CreditEnergy Price Stability and RisksIn this episode, Gordon Kerr, Head of European Research discusses the stabilisation of the European energy market and the impact on corporates, sovereigns, projects and infrastructure. Gordon engages with Karim Nassif from KBRA’s project finance and infrastructure team as well as Ken Egan from KBRA’s sovereign ratings team, in a conversation about how Europe’s energy market is impacting on various areas. Europe is experiencing a period of energy price stability, but as the region transitions to greater energy security and carbon neutrality, risks remain. A copy of the full report can be found on kbra.com.
2023-03-3024 min
Conversations in European CreditGrowth in Private CreditIn this episode, Gordon Kerr, KBRA’s Head of European Research, discusses the marked growth in private credit as highlighted in our recent report on the topic. Gordon is joined by Asia Drobnik and Patricia Cantwell from KBRA’s Financial Institutions team in a lively conversation about how the private credit market has grown to fill a gap left by bank lenders following the global financial crisis. A copy of the full report can be found on kbra.com.
2023-03-1611 min
Conversations in European CreditSolar PV FundingIn this episode, Gordon Kerr, Head of European Research discusses solar photovoltaic funding and KBRA’s report on the potential for the use of securitisation to support the green transition. Gordon engages with KBRA’s Emilie Nadler from KBRA’s ESG team as well as Kilian Walsh from the European ABS ratings team in a conversation about how the demand for rooftop solar PVs is growing. As Europe looks to transition to a greater use of renewables, funding will be needed. The US Solar ABS market offers a positive example on how solar expansion can be supported. A copy of the...
2023-03-0220 min
Conversations in European CreditCLO Manager Style ComparisonsIn this episode, Gordon Kerr, Head of European Research discusses collateralised loan obligation manager styles and KBRA’s report. Gordon engages with KBRA’s Gabriele Gramazio from the structured credit ratings team, in a conversation about European CLO manager styles in their approach to managing pools of leveraged loans. A copy of the full report and subsequent updates; European CLO Manager Style Comparisons as well as the US version, U.S. CLO Manager Style Comparisons can be found on kbra.com.
2023-02-1620 min
Conversations in European CreditShrewd Debt Management by European SovereignsIn this episode, Gordon Kerr, Head of European Research discusses the support offered by the prudent debt management of European sovereigns over the past several years. Gordon engages with KBRA’s Ken Egan, from the sovereign ratings team, in a conversation about the challenging interest rate environment and how European sovereigns are in a positive position to manage through the increases in their yield curves. A copy of the full report European Sovereigns Demonstrate Shrewd Debt Management can be found on kbra.com.
2023-02-0211 min
Conversations in European CreditEuropean Securitisation 2023 Outlook Part 2In this episode, Gordon Kerr, Head of European Research discusses the Outlook for European Securitisation in 2023. In the second of a two-part series, Gordon engages with KBRA analysts to cover corporate-oriented collateral in European securitisations. Collateral challenges are expected to be the focus for 2023 as the recessionary environment takes hold and companies face the challenges of a slowdown and increased costs. KBRA analysts, Ken Egan from sovereign ratings, Killian Walsh from European ABS, Stephen Hughes from European CMBS, and Gabriele Gramazio from European CLOs cover the various challenges ahead for European corporate collateral and the impact on securitisation. A...
2023-01-1219 min
Conversations in European CreditEuropean Securitisation 2023 Outlook Part 1In this episode, Gordon Kerr, Head of European Research discusses the Outlook for European Securitisation in 2023. In the first of a two-part series, Gordon engages with KBRA analysts to cover consumer-oriented collateral in European securitizations. Collateral challenges are expected to be the focus for 2023 as the recessionary environment takes hold and consumers face increased cost of living. KBRA analysts, Ken Egan from sovereign ratings, Killian Walsh from European ABS, and Kali Sirugudi from European RMBS cover the various challenges ahead for European consumers and their impact on securitization. A copy of the full European 2023 Outlook report can be found...
2023-01-0520 min
Conversations in European CreditSurvey of European Securitisation InvestorsIn this episode, Gordon Kerr, Head of European Research is asked questions by Luigi Griffo from KBRA’s European Investor Relations about the results of a recent survey. Investors in the European Securitisation market were asked their views for issuance and performance in the short to medium term. This is the second KBRA survey in 2022, providing a dynamic picture as views change. The first survey in June 2022 painted a concerning picture as many challenges lay ahead. The environment still presents a difficult future, but the context has changed, as have investors views. Take a listen to some of the in...
2022-12-1512 min
Van Hesser's 3 Things in Credit - A KBRA PodcastKBRA’s Survey, Leveraged Loan Watch, and Consumer Borrowing SpikeThis week, our 3 Things are: 1. KBRA’s European Securitization Survey. Fresh insight into investor sentiment. 2. Credit’s canary in the coal mine. A Bloomberg survey shows what investors are watching. 3. Consumer borrowing. It’s rising sharply. It fits the Fed’s narrative.
2022-12-0907 min
Conversations in European CreditSpanish Housing and Mortgage MarketIn this episode, Gordon Kerr, Head of European Research speaks with Kali Sirugudi from the RMBS ratings team about the impact of the current rising interest rate environment on commercial real estate in Europe. We engage in a discussion about how the Spanish housing market has adapted from its position pre-global financial crisis and is better prepared for the challenges ahead. In Spain, the housing market suffered dramatically in the wake of the global financial crisis with house prices collapsing and delinquencies and defaults surging. In 2023 the market will be challenged again, but KBRA argues that it is in...
2022-12-0117 min
Conversations in European CreditUK Consumer Crunch and the Challenging Times AheadIn this episode, Gordon Kerr, Head of European Research, speaks with Kali Sirigudi, Managing Director, RMBS, about the challenges ahead for UK consumers. The two KBRA analysts discuss the potential impact of current developments impacting the average UK consumer and borrower. Further reading on the topic can be found on kbra.com.
2022-09-2222 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: July 8, 2022This week, our 3 Things are:1. Corporate earnings. Growth should slow, but remain good enough for credit. 2. KBRA Altman Default Forecast. Our latest reading has jumped significantly.3. Lack of Economic Excesses. That points to a shorter and shallower downturn.
2022-07-0814 min
Conversations in European CreditGlobal ABS 2022 InsightsIn this episode, Gordon Kerr, Head of European Research speaks with Yee Cent Wong, Co-Head of Europe, Kali Sirugudi, Managing Director, European RMBS, Kilian Walsh, Managing Director, European ABS, Stephen Hughes, Director, European CMBS, and Gabriele Gramazio, Director, European Structured Credit about the recent annual Global ABS conference for the securitization market. With market concerns on the horizon, it wasn’t all rosy on the beach in Barcelona. In this podcast we discuss insights that KBRA analysts have gleaned from their discussions with market participants. Further reading on the event can be found in the Daily Recaps in full on...
2022-06-2224 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: April 22, 2022In this week's episode: 1. Our KBRA Altman default forecast. We’ll dig into the model’s outcome. 2. A potential energy spike. The single biggest risk we see to credit markets. 3. JPMorgan Chase’s loan loss reserve build. Should we worry?
2022-04-2210 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: March 11, 2022In this week's episode, KBRA Chief Strategist Van Hesser discusses:1. Small business. This all-important economic engine is sputtering. We’ll explore. 2. Earnings durability. Estimates remain at a cyclical peak. Does that make sense? 3. Places to hide. Some sectors are built better for this kind of environment. We’ll name names.
2022-03-1110 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: March 4, 2022In this week's episode, KBRA Chief Strategist Van Hesser discusses: 1. Geopolitical shocks and credit. At what point do geopolitical events impact markets? 2. China. Can it play a positive role in the Russia-Ukraine conflict? 3. Russia facing another possible default. What’s the risk of contagion?
2022-03-0410 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: February 25, 2022In this week's episode, KBRA Chief Strategist Van Hesser discusses: 1. Russia. While Russia and Ukraine represent less than 2% of the global economy, Russia’s invasion will play a key role in an emerging new world order. 2. Normalization and the risks to credit. We’ve written an extensive piece about what that means. We’ll give you the highlights. 3. Falling cyclicals. That doesn’t square up with macro views of economic growth prospects. We’ll explore.
2022-02-2509 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: February 18, 2022In this week's episode, KBRA Chief Strategist Van Hesser discusses: 1. Equity volatility. It does bleed into credit spreads. Keep an eye on it. 2. A bank examiner’s view of credit risk. It doesn’t quite square up with what we hear from the banks. 3. Supply chains. Here’s an easy way to mark their progress in opening up.
2022-02-1809 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: February 11, 2022In this week's episode, KBRA Chief Strategist Van Hesser discusses: 1. Inflation fears. It’s become a national obsession. Our thoughts on what it means for credit markets. 2. Consumer debt jumps higher. A sign of confidence or stress? We’ll explore. 3. Recession risk. One respected reading suggests there is a 50% likelihood for a recession within the next 12 months. We’ll clue you in.
2022-02-1110 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: February 4, 2022In this week's episode, KBRA Chief Strategist Van Hesser discusses:1. Slowing growth. Q4’s extraordinary GDP print feels like ancient history. Best to prepare for what’s ahead. 2. The ISM manufacturing index. This indicator has proven to be a useful guide to where credit spreads are headed. 3. Larry Fink’s annual letter to CEOs. Here’s what his 2022 message means for creditors.
2022-02-0409 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: January 28, 2022In this week's episode, KBRA Chief Strategist Van Hesser discusses:
Jerome Powell’s even more hawkish pivot. A more aggressive tightening stance introduces additional risk into our outlook.
Stocks versus bonds. Why has credit held in relatively well compared to equities’ powerful sell-off? We’ll explore.
The all-important U.S. consumer. We’ll canvas three big consumer lenders’ Q4 results for insights into just how durable the consumer is.
2022-01-2810 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: January 21, 2022In this week's episode, KBRA Chief Strategist Van Hesser discusses:
Big bank earnings. All of the attention was directed at expense growth, which ignores a remarkable development that is far more important to creditors.
Recession risk. It’s back on our radar, and history tells us it needs to be on yours.
The energy transition. Spiking oil prices are one sign that this is not likely to be a smooth one.
2022-01-2110 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: January 14, 2022In this week's episode, KBRA Chief Strategist Van Hesser discusses:
Turning inward. The world’s two economic superpowers, the U.S. and China, have their respective plates full of domestic issues that threaten to slow global growth.
Wide margins. Corporate pricing power, which is contributing to the highest inflation in 40 years, has boosted margins.
The credit cycle. Some say we’re mid-cycle and others say late. We’ll have a look.
2022-01-1409 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: January 7, 2022In this week's episode, KBRA Chief Strategist Van Hesser discusses:1. Risks. There is no shortage of things on this list, but we’ll highlight the ones that we are paying close attention to. 2. The jobs report. Our focal point remains more on growth in the labor force and less on the unemployment rate. 3. Supply chains are broken and driving the inflation narrative, right? The latest data shows the predictable correction is happening.
2022-01-0709 min
Conversations in European CreditStructured Finance: European InsightsChallenges are developing on the horizon for the European securitisation market. In this episode, Gordon Kerr, Head of European Research at KBRA, is joined by Killian Walsh, Kali Sirigudi, Stephen Hughes, and Gabriele Gramazio to discuss the Outlook for European structured finance in 2022 and outline how KBRA views the impact on the sector.
2021-12-1726 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: December 17, 2021In this week's episode, KBRA Chief Strategist Van Hesser discusses:
Linear thinkers. The crowd that believes the recovery will be a straight line based on past experience runs the risk of pushing the Fed into a recession-producing policy error. We’ll explain.
Geopolitical hot spots. As the Biden administration focuses internally on navigating America’s toxic politics, the likelihood of flare-ups increases. We’ll tell you what we’re watching.
Corporate earnings are forecast to rise 9% year-over-year in 2022. Is the backdrop to getting there as benign as it needs to be?
2021-12-1710 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: December 10, 2021In this week's episode, KBRA Chief Strategist Van Hesser discusses: 1. The leveraged loan market saw deals pulled this week, prompting some market heavyweights to wonder if this is the start of something bigger. We’ll weigh in. 2. China has become a remarkably fluid story influencing credit markets. Here’s what to watch in 2022. 3. Small to midsize business indicators are flashing yellow. Don’t lose sight of what is happening in this sector that is so important to economic growth.
2021-12-1010 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: December 3, 2021In this week's episode, KBRA Chief Strategist Van Hesser discusses:1. Omicron. We’ve sifted through all the noise to come up with useful perspective to creditors. 2. Nordstrom’s big earnings miss. What’s the correlation to the retailing sector? 3. One measure of investor sentiment has swung wildly in the past week. We’ll walk you through the equities-versus-credit story.
2021-12-0311 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: November 19, 2021In this week's episode, KBRA Chief Strategist Van Hesser discusses: 1. The fading away of COVID, at least in terms of its ability to disrupt. New developments on the therapeutic front might just make that statement true. 2. Retailers had a really strong week. Is the retail apocalypse over? 3. Raging inflation means margin pressure, right? Not so fast—we’ll check Q3 earnings to see where we stand.
2021-11-1910 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: November 12, 2021In this week's episode, KBRA Chief Strategist Van Hesser discusses: 1. Inflation. It’s back, but will it stay? Here is some much-needed perspective. 2. General Electric’s cautionary tale. Did investors overweight the benefits of diversification? 3. The Fed’s semiannual report on risks to the financial system is out, and it’s fairly benign. Should we be worried?
2021-11-1212 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: November 5, 2021In this week's episode, KBRA Chief Strategist Van Hesser discusses: 1. The spike in home values. We remain comfortable with the risks to markets and the broader economy, and there are opportunities emerging in what could be a housing “super-cycle.” 2. Where did all of the savings go? Apparently, it’s been spent, taking away one oft-discussed engine of future spending growth. 3. Government bond market volatility. Should we care?
2021-11-0509 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: October 29, 2021In this week's episode, KBRA Chief Strategist Van Hesser discusses: 1. Uncertainty reigns. The common thread running through our recent webinar was one of uncertainty—something underweighted in credit markets today. 2. General Electric (GE) is making progress in its restructuring, and its commitment to deleveraging is sensible. But a challenging environment is not making GE’s transition an easy one. 3. Consumer malaise—it’s a corrosive condition that is showing up more and more in the Great Deceleration.
2021-10-2909 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: October 22, 2021In this week's episode, KBRA Chief Strategist Van Hesser discusses: 1. Thematic investing seems to be trumping fundamentals in credit. That doesn’t sound like an investing strategy—but in this market, with this level of exogenous influence, it might make sense. 2. Big bank earnings once again reassured markets that all is not only well, but extraordinarily so. We canvas the conference calls for insightful color. 3. COVID’s impact on globalization and supply chains—how real is the threat? We’ll examine the issue.
2021-10-2212 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: October 15, 2021In this week's episode, KBRA Chief Strategist Van Hesser discusses: 1. The rise in energy prices is spooking politicians and investors. What does it mean for credit? We’ll set the context. 2. As we enter Q3 earnings season, all eyes are on corporate margins. Powering through the multitude of headwinds is a tall order. 3. Europe’s political winds are shifting in ways that are reducing euro area credit risk. We’ll talk to KBRA’s Europe-based sovereign analyst for his take.
2021-10-1512 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: October 8, 2021In this week's episode, KBRA Chief Strategist Van Hesser discusses: 1. The jobs market is tight, but not strong, and on Jobs Friday it’s important not to equate the two. We’ll explain. 2. Some investors believe corporate credit risk has been structurally improved. We’ll examine the argument. 3. Where did all the growth go? Economic growth forecasts for Q3 have plummeted. Does that come as a surprise to you?
2021-10-0812 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: October 1, 2021In this week's episode, KBRA Chief Strategist Van Hesser discusses: 1. With the reality of the Great Deceleration settling in, we canvas Wall Street to see what risks could turn market sentiment. 2. Economic growth is being cut in half, but corporate earnings are expected to grow at double-digit rates? We’ll take the under. 3. Consumer ABS performance offers great insight into the health of the U.S. consumer. We’ll talk to our head of ABS research for his insights.
2021-10-0113 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: September 24, 2021In this week's episode, KBRA Chief Strategist Van Hesser discusses:
Evergrande—no, this is not China’s Lehman moment, but it does speak to what is happening with the world’s second-largest economy, and that’s important to credit investors. We’ll elaborate.
Stretched valuations—just how worrisome are they? We think it’s debatable, and we’ll lay out our case.
The Fed speaks! While the world is focused on dot plots, we focused on its projections, and had a hard time connecting those dots.
2021-09-2414 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: September 17, 2021In this week's episode, KBRA Chief Strategist Van Hesser discusses: 1. Gap’s sensible liability and cash management through the COVID period has put it on a more creditworthy path. 2. A historic percentage of Americans believe the country is in bad shape. How does that square with buoyant financial markets? 3. Fading inflation—this was a good week for those in the transitory camp and that’s good for risk assets.
2021-09-1710 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: September 10, 2021In this week's episode, KBRA Chief Strategist Van Hesser discusses: 1. Here comes what could be a 10% hit to corporate earnings—it’s higher taxes, if Biden gets his way. 2. Credit deterioration in the “buy now, pay later” space could be a canary in the coal mine for consumer lenders. We’ll explain. 3. The delta variant is causing travel to fall off once again. But don’t think the travel, leisure, and hospitality sectors will be out of the woods post-COVID.
2021-09-1010 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: August 27, 2021In this week's episode, KBRA Chief Strategist Van Hesser discusses:
CLOs are now a $1 trillion market (and growing). A report out of the New York Fed points to a healthy maturation of its investor base. We’ll elaborate.
Afghanistan. Markets have looked past this story until now. We feel a gravitational pull toward safer assets.
Capex, expected to rise materially in 2021, has come in a bit soft lately, and not all firms and sectors are participating. Pay attention to those that do.
2021-08-2710 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: August 20, 2021In this week's episode, KBRA Chief Strategist Van Hesser discusses:
Squaring up deteriorating economic growth with stretched valuations.
China’s fluid policy-driven initiatives are creating a headwind for the global economy.
In search of “TINA Turners.” No, not that Tina Turner. We’re looking for things that will change the course of TINA investing, as in There Is No Alternative.
2021-08-2014 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: August 13, 2021In this week's episode, KBRA Chief Strategist Van Hesser discusses: 1. The housing market is moving from superhot to warm. It’s a good proxy for what’s ahead for the broader economy. 2. Small business optimism has taken a turn for the worse. We’ll explore what’s behind it, and why this matters. 3. The Democrats’ plan to tie Biden’s $3.5 trillion “human infrastructure” bill to the $1 trillion traditional infrastructure bill risks more than just the $1 trillion bill. We’ll explain.
2021-08-1310 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: August 6, 2021In this week's episode, KBRA Chief Strategist Van Hesser discusses:1. In search of economic normality. We know this isn’t it, but it’s coming. 2. The Fed is guiding its path toward tightening seemingly every day. Our thoughts around what happens to credit, when it gets there. 3. Corporate earnings are forecast to continue to grow off of today’s stimulus-fueled results. We would be a bit more cautious about that outlook.
2021-08-0609 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: July 30, 2021In this week's episode, KBRA Chief Strategist Van Hesser discusses:1. The UK vs. COVID—Its spike in new cases, and subsequent fall, could serve as a harbinger of what’s to come in the U.S. But there is an important difference between the two countries. You’ll want to stay on top of this story. 2. The upcoming July jobs report might be the most inconsequential one of the pandemic era. We’ll tell you why. 3. Boeing and GE—Two industrial mainstays undergoing what their respective management teams call “transformations.” We’ll check in.
2021-07-3010 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: July 23, 2021In this week's episode, KBRA Chief Strategist Van Hesser discusses: 1. The spread of the delta variant is keeping the pandemic on the radar of investors, and contrary to some, we believe it is impacting economic behavior. 2. A number of useful proxies for economic growth have rolled over. It’s worth considering as you think through the second half. 3. The Fed says the real unemployment rate is 8.7%. There remains considerable slack in the labor market.
2021-07-2311 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: July 16, 2021In this week's episode, KBRA Chief Strategist Van Hesser discusses: 1. Margin pressure. The Producer Price Index confirmed this week what we all know—strong demand and supply chain bottlenecks are causing price pressure that figures to hit corporate margins. We think this is largely a story shareholders have to worry about. 2. ESG favorable bonds are on track to cross $1 trillion this year. The momentum, and the change that goes with it, is palpable. 3. Big bank earnings are out, as is their color on the credit environment. Their barely contained optimism reflects an environment that soon will fa...
2021-07-1613 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: July 9, 2021In this week's episode, KBRA Chief Strategist Van Hesser discusses: 1. The rally in rates. It seems to have caught just about everyone off guard. We’ll explore what it means for credit markets. 2. The pandemic has not gone away. The most lethal side of it has been contained for now, but it still is likely to act as a drag on the global economy. 3. Where did all the defaults go? We’ll take stock of this extraordinary environment.
2021-07-0911 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: July 1, 2021In this week's episode, KBRA Chief Strategist Van Hesser discusses: 1. The consumer has remained a source of economic strength throughout the pandemic, thanks to the strong hand of the federal government. Ahead of the jobs report, we take stock of the consumer’s financial health.2. The U.S. is in the midst of a productivity boom, something enhanced, ironically by the pandemic. Will it last?3. We really didn’t need a dot plot to appreciate the divergent views coming out of the Fed regarding the threat of inflation. Our chief sovereign analyst thinks this...
2021-07-0112 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: June 25, 2021In this week's episode, KBRA Chief Strategist Van Hesser discusses: 1. The Great Deceleration. It’s coming. Have we all gotten dangerously use to a life on stimulus? That’s going to change, and it probably won’t be elegant. 2. Your tax dollars are at work. This week, your federal government has been active in ways that touch credit markets. We’ll share our thoughts. 3. Broadband is taking off. We’ll highlight a transaction that gets you exposure.
2021-06-2511 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: June 18, 2021In this week's episode, KBRA Chief Strategist Van Hesser discusses:1. One of the consumer lending business’ most insightful minds is warning that losses have been deferred through the pandemic and credit underwriting models need to discount the pandemic era loss experience. 2. The West is experiencing its worst drought in at least 20 years, something likely to hit exposed sectors over the course of the summer. 3. A far greater percentage of companies are in financial and/or operational distress than you might realize, and having quarterly economic growth go from 10% to 3% over the next year is no...
2021-06-1810 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: June 11, 2021In this week's episode, KBRA Chief Strategist Van Hesser discusses: 1. The markets’ obsession with inflation continues unabated. We’ve gathered three distinctly different views from three high-profile sources along with our own and will let you decide where you stand. 2. The NFIB’s Small Business Optimism Index is out for the month of May is out, and the expectations component surprised us. 3. Dust off your LBO models! These credit-impairing transactions are back, with the largest deal announced since the GFC, a $34 bn management buyout for privately held Medline. While LBOs are never good for creditors, event risk j...
2021-06-1113 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: June 4, 2021In this week's episode, KBRA Chief Strategist Van Hesser discusses: 1. The press is reporting that the Fed will begin to unwind its corporate bond investments made to stabilize credit markets in the early days of the pandemic. Is this a taper tantrum corporate-style? 2. Credit markets are normalizing—what does that mean for supply and spreads? 3. KBRA has published its financial strength rating report on Lloyd’s of London. It’s worth a look.
2021-06-0408 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: May 27, 2021In this week's episode, KBRA Chief Strategist Van Hesser discusses: 1. Navigating uncharted economic waters requires data, but the data is noisy. Don’t lose sight of what’s happening with consumer confidence—it’s been fairly insightful in framing out the economic recovery. 2. The technology sector gets nicked by creditors from a business risk standpoint. Big tech needs to be reclassified. We’ll explain. 3. The NAIC’s adoption of private rating letter rationale reports is a sensible outcome without hindering the U.S. private placement market.
2021-05-2708 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: May 21, 2021In this week's episode, KBRA Chief Strategist Van Hesser discusses: 1. It surprised us to find that bankers remain cautious in terms of their lending. We’ll investigate. 2. Citi’s Economic Surprise Index just hit the lowest point since June 2020, something hardly consistent with fears of overheating 3. Solar is on a tear! We’ll check in with KBRA’s Head of Consumer ABS to explain what you need to know about investing in solar from a creditor’s perspective.
2021-05-2116 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: May 14, 2021In this week's episode of 3 Things in Credit, KBRA Chief Strategist Van Hesser discusses:1. Amazon just issued $18.5 bn in debt and the biggest question is why. The answer is actually quite straightforward. 2. Inflation—the noise around this continues to build. We’ll frame out the issue for you. 3. The Fed just released its semiannual Financial Stability Report. It’s a good news/bad news story that you should know about.
2021-05-1414 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: May 7, 2021In this week's episode of 3 Things in Credit, KBRA Chief Strategist Van Hesser discusses:1. COVID-19 has altered how we need to look at the credit cycle in the future. We’ll tell you how. 2. If you don’t think Bitcoin is relevant to credit markets, you’ll want to pay attention to something we discovered this week. 3. One credit asset class taking off is investment funds issuing bonds. We’ll talk to an active participant in the space to explain why.
2021-05-0712 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: April 30, 2021In this week's episode, KBRA Chief Strategist Van Hesser discusses: 1. The era of big government is back! This actually has a big impact on default rates. We’ll tell you how. 2. We’ve updated our key themes in credit. Unlike the Fed’s statement, you won’t need to perform forensic analysis on our key takeaways. 3. In this historically low-yielding environment, investors are increasingly getting out of their comfort zone in search of yield. We’ll tell you where.
2021-04-3011 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: April 23, 2021In this week's episode of 3 Things in Credit, KBRA Chief Strategist Van Hesser discusses: 1. Economic Slack—Our index of the U-6 underemployment rate and excess industrial capacity tells us that there is plenty of slack in the economy, giving comfort that inflation fears are overblown. 2. Big Bank Earnings—Our economic canaries in the coal mine. Q1 earnings’ actions and commentary suggest nearly all is well in commercial and consumer loan risk. 3. Consumer Confidence—The latest report from the University of Michigan reminds us that the pandemic and rising cost of living are weighing on the U.S. consu...
2021-04-2314 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: April 16, 2021In this week's episode of 3 Things in Credit, KBRA Chief Strategist Van Hesser discusses: 1. The Johnson & Johnson vaccine pause is yet another data point that suggests that pandemic risk is not yet in the rearview mirror 2. The economic boom is coming—retail sales’ blowout, the latest high-frequency data gathered by the New York Fed, and the big drop in jobless claims suggest the boom is here, and 3. The rise in commodities prices is being felt by manufacturers the world over as the reopening takes root; Materials producers are the beneficiary, and strong earnings growth is like...
2021-04-1612 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: April 9, 2021In this week's episode of 3 Things in Credit, KBRA Chief Strategist Van Hesser discusses: 1. BP is but the latest multinational that is attempting to change its stripes to become more bondholder-friendly. 2. The ISM’s latest PMI releases for both manufacturing and services are pointing to a recovery that is looking like it might be a bit unruly, and 3. Jamie Dimon’s letter to shareholders is an upbeat near-term view, but a rather sobering one taking stock of America’s future.
2021-04-0913 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: April 1, 2021In this week's episode of 3 Things in Credit, KBRA Chief Strategist Van Hesser discusses: 1. The failure of Archegos and its ripple effects through risk markets. We’ll tell you what is worth worrying about…and what is not. 2. Economically, the “calm before the surge” is transitioning to just the surge—fasten your seatbelts, it’s going to be quite a ride. 3. The economic fortunes of the US and Europe are diverging. Will it last?
2021-04-0112 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: March 19, 2021In this week's episode of 3 Things in Credit, KBRA Chief Strategist Van Hesser discusses: 1. The Fed has joined other prognosticators in materially improving its U.S. economic forecast. Peel off the stimulus effect and prepare to be underwhelmed2. China’s influence on the global economy, and credit markets, is multi-faceted and it continues to grow 3. KBRA Altman, a division of KBRA Analytics, has released a one-year forward, Corporate Default Forecasting Model, and our initial outcome is yet another remarkable datapoint in the COVID-19 saga
2021-03-1912 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: March 12, 2021In this week's episode of 3 Things in Credit, KBRA Chief Strategist Van Hesser discusses: - The cost of just about everything manufacturers need is jumping as the economy roars back to life. Beware of margin compression over the next couple of quarters. - The CEO of General Electric “turned the lights out” on GE Capital this week. There are important lessons learned from this saga, we’ll elaborate. - The American Rescue Plan is here. We’ll sort through the hype and tell you what it means for creditors.
2021-03-1213 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: March 5, 2021In this week's episode of 3 Things in Credit, KBRA Chief Strategist Van Hesser discusses:• Citadel is the latest nonbank financial to access the investment-grade capital markets. • The pandemic has pushed what was the investor’s single largest concern—rising geopolitical risk—to the back seat. It’s rising again. Don’t lose sight of it. • Few in markets seem to be worried about the health crisis going sideways. Two experts think you should. We’ll tell you what they have to say.
2021-03-0512 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: February 26, 2021In this week's episode of 3 Things in Credit, KBRA Chief Strategist Van Hesser discusses: The noise around rising rates has become deafening, but the credit story remains sound; The loan market has proven to be a port in the rising rate storm; The Fed acknowledges excesses and vulnerabilities in the financial system, away from banks.
2021-02-2612 min
Van Hesser's 3 Things in Credit - A KBRA Podcast3 Things in Credit: February 5, 2021In this week's episode of 3 Things in Credit, KBRA Chief Strategist Van Hesser discusses:
• The Jobs report: Beyond the headline numbers, the quality of the labor market is telling a different story
• Energy on the rebound: Energy has gotten caught up in the reflation trade, and it may have some legs
• ESG management, not ESG scores: Van explains the difference, as well as KBRA's approach to evaluating ESG
2021-02-0511 min