Andrew Hollins brings you a round-up of the latest Corporate Treasury Data Insights, including an analysis of the banking sector following the recent collapse of SVB and Credit Suisse, and the risk of sovereign crises in emerging markets.
- There are multiple reasons to indicate that a banking sector crisis, similar to that of 2008, is unlikely in the near term. However, economies are still facing sharp increases in interest rates, along with poor investment and risk management decisions by some financial institutions.
- The latest updates from Fathom’s Financial Vulnerability Indicator explores increasing levels of sovereign risk in emerging markets.
- See how Refinitiv tools can be used both to monitor and analyse risk in such areas as credit risk in public companies.
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Chart of the Month
Following the collapse of two US banks and the takeover of the troubled Credit Suisse by its main competitor, UBS, prospects of a global banking crisis have heightened.
There are multiple reasons to indicate that we are not on the verge of a banking sector crisis similar to 2008. Both U.S. and Swiss authorities responded firmly and swiftly, helping to stabilise markets.
Banks, on the whole, have healthier capital positions than in 2007, and the loss provisions of banks that are systemically important are significantly lower now than they were in the build-up to 2008 – indicating that there has not been a fundamental and systematic deterioration in underlying economic conditions.
That said, the nature of the current challenges comes with their own set of risks, and it would be premature to conclude that we are out of the woods. Read more ->
Monitor and analyse credit risk of your banks with CORPT in Refinitiv Eikon
- Monitor all credit rating events with Issuer Ratings Monitor (RATMON).
- Access premium intraday pricing for CDS indices and their constituents, as well as for CDS single names in general with CDS Dashboard (CDSD).
CORPT is the home of Corporate Treasury at LSEG. Open the CORPT app in Eikon ->
Risk of sovereign crises building in emerging markets
The latest updates from Fathom’s Financial Vulnerability Indicator, which estimates the probability of sovereign, currency and banking crises, show increasing levels of sovereign risk, particularly in emerging market economies like India. View the analysis ->
Could we have predicted SVB’s fall-out?
See how Refinitiv Workspace can be used to monitor risk with tools such as the StarMine Credit Risk Models, a unique set of risk models for predictive value on worsening/improving credit risk for public companies. Watch now ->
Lending Lowdown Podcast: SVB and Signature Bank collapse
What do recent bank failures mean for the syndicated bank loan market? Host Maria Dikeos talks to Peter B. York, Adjunct Professor at Ohio State University and recently retired Managing Director and Head of large market asset-based loan originations at a major money centre bank. Listen here ->
Zeroing in on ESG due diligence
Our latest three-part webinar series unpacks the core elements of ESG risk, drawing insights from a range of industry experts. When asked about the biggest challenge to addressing social risks across the supply chain, the largest percentage of our webinar audience (44.7 percent) selected “getting quality data on potential risks”. Catch-up on the series ->
