Corporate Credit Market Developments - Expectations for the near future and how to prepare for debt restructuring

Watch a "now-casting" webinar from Swedish House of Finance with Professor Bo Becker, Cevian Professor of Finance at the Stockholm School of Economics, and Peter Ström, Head of Client Coverage, Large Corporates & Institutions at Swedbank.

The economic implications of Covid-19 remain difficult to forecast but may be severe. In corporate credit markets, significant pressures have already emerged: ratings are downgraded, corporate bond spread are widening, and loan pricing is falling. In addition, several policies are likely to add to corporate leverage. Bo Becker and Peter Ström discussed current corporate credit market developments, the key economic mechanisms at work, what we can learn from prior crises for understanding this one. They also discussed expectations for near future, how funding to corporates is affected and how to prepare for the inevitable restructuring needs that will follow.