Ukraine Credit Rating Cut Further by S&P on Protracted War and Nation Reliant on Donations

Global ratings agency S&P cut Ukraine’s credit rating further Friday, in a move that was not unexpected and follows Moody’s earlier move in the week. It also assigned a negative outlook, saying risks from the military conflict could undermine the government’s ability to meet its debt obligations. The moves flow on from S&P and Fitch swiftly cutting Ukraine on default worries. Russia’s debt was cut to junk back then. The International Monetary Fund is exploring all options to aid Ukraine … Continue reading “Ukraine Credit Rating Cut Further by S&P on Protracted War and Nation Reliant on Donations”

Russian Central Bank Slashed Key Interest Rate to 11% as Inflation Pulls Back From 20-year highs on Rouble Strength

Russia’s Central Bank (CBR) in a fight to arrest the plummeting Russian economy smashed from impacts from the invasion of Ukraine. The CBR has now slashed its key rate by a cumulative 900 basis points since February, the rate was cut to 14% in April, weeks after an emergency rate increase to 20% triggered by Russia’s move to send tens of thousands of troops into Ukraine on Feb. 24 and the Rouble’s collapse. Since than capital controls have seen the … Continue reading “Russian Central Bank Slashed Key Interest Rate to 11% as Inflation Pulls Back From 20-year highs on Rouble Strength”

Russia Credit Rating Slashed to Junk by S&P and Fitch, Moody’s Issues Junk Warning

Credit rating slashed Russia’s credit rating Friday. S&P and Fitch lowering Russia’s rating to ‘junk’ status, Moody’s said it is putting it on review for a downgrade to junk. At the same time S&P and Fitch swiftly cut Ukraine on default worries. The International Monetary Fund is exploring all options to aid Ukraine with further financial support, said its head, Kristalina Georgieva. The Russian declaration of war on Ukraine has ravaged both countries finances and people with severe consequences for … Continue reading “Russia Credit Rating Slashed to Junk by S&P and Fitch, Moody’s Issues Junk Warning”

Traders Musings Over Stock Market Chaos & Madness After Fed, Jobs and Technology Sell-Off

Looking back at a volatile week with TradersCommunity Trading Room traders. Friday closed with the US jobs report and heavy market selling. Join Andrew, Alex and Mahdavi in a candid discussion of the markets, fundamentally and technically within their trading plans. Feel free to share, like and subscribe to our channel and comment below. Get insight from traders after the chaos in Small Caps through to the S&P and Nasdaq futures and options as they explain through charts and trades. … Continue reading “Traders Musings Over Stock Market Chaos & Madness After Fed, Jobs and Technology Sell-Off”

CBO Estimates Build Back Better Act To Increase Unified Deficit By $115.1 billion

The Congressional Budget Office is out with an Estimated Budgetary Effects of Title VI, Committee on the Judiciary, H.R. 5376, the Build Back Better Act. CBO estimates that enacting this title would result in a net increase in the unified deficit totaling $115.1 billion over the 2022-2031 period. That increase in the deficit would result from an increase in direct spending of $147.2 billion and an increase in revenues of $32.1 billion. Some of those budgetary effects are associated with … Continue reading “CBO Estimates Build Back Better Act To Increase Unified Deficit By $115.1 billion”

Fitch Warns United States Could Lose ‘AAA’ Over Political Brinksmanship Over Debt Limit

Rating agency Fitch warned debt limit games could put US AAA rating at risk. If US debt limit were not raised or suspended in time, political brinksmanship and reduce the financing flexibility could increased risk of sovereign default United States of America at ‘AAA’

US Current Account Highest Since 2007 at -$190.3 billion

The US announced  Q2 2021 current account deficit grew to $190 billion or 3.3% of GDP, its largest since Q2 of 2007 from a downwardly revised $89 billion prior and compared to forecasts of $191 billion shortfall. Reduced surpluses on services and on primary income mostly offset by  reduced deficit on secondary income.

US Sovereign Rating Affirmed AA+ With Stable Outlook Stable By S&P

Standard and Poors rating agency affirmed that the US sovereign ratings remain ‘AA+/A-1+’ and the outlook remains stable. The US is thundering to increasingly massive debt levels since the global pandemic. The S&P says sovereign stability is based on strong American institutions, a diversified and resilient economy, extensive monetary policy flexibility

Fitch says 2021 Loan Defaults To Top 2008 Rate

Fitch ratings says the cumulative effect from the Covid crisis worse than the financial crisis of 2008-2010. The U.S. leveraged loan default rate to top high yield in 2021 as YTD Default Rate Hits 4%. Nearly 40 percent of the leisure/entertainment universe could default by YE 2021.