Debt

As one of the world’s largest public lending institutions the European Investment Bank has granted financial support for thousands of companies and projects over the years. According to data gathered by AksjeBloggen.com, the combined value of EIB-financed projects in the last two decades reached €1.2trn.

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has today published a Thematic Report on Collateralised Loan Obligations (CLOs) credit ratings in the European Union (EU).

Need for green investments is crucial: current pandemic shows responsible investors in emerging markets can collaborate with issuers through green bonds to unlock long-term capital and help issuers become more resilient for shocks to come

Deteriorating collateral values and higher defaults will impair the performance of Irish re-performing RMBS, even if cash reserves are adequate to cover temporary collection delays and liquidity shortfalls related to Covid-19 payment holidays.

As an increasing number of companies battle the economic consequences of COVID-19, their ability to service bond payments is coming under intense scrutiny. In this Q&A, Sunita Kara considers whether current high-yield valuations adequately compensate investors for default risk and looks at the broader implications of the pandemic.