Fitch's Inside Credit: Repo Risk in Focus

NEW YORK--()--This week's Fitch Ratings Inside Credit newsletter focuses on the fire sale risks that the tri-party repo market poses to corporate bonds.

A deep dive into repo collateral shows that several characteristics of the underlying corporate bonds could amplify price dislocation during periods of market turmoil.

"Maturity mismatches, low trading frequency and `wrong way' risk could compound market volatility in the event of forced sales of collateral," says Robert Grossman, Managing Director of Macro Credit Research.

Other topics covered in this week's edition of Inside Credit include:

- Maturing Bank Resolution Makes Differentiated Senior Default Risk Possible

- Asia's Banking Systems Less Exposed to Currency Risks

- U.S. Rate Hike Would Cause Modest Corporate Discomfort

- Lower Institutional Fees to Hit EU Asset Manager Margins

- Key Credit Issues for RMBS Backed by Collateral from New Lenders

- Difficult Operating and Market Conditions in Latin America

- U.S. High Yield Default Rate Driven by Spike in Distressed Debt Exchanges

- European Network Companies Most Exposed to Low Inflation

- UK Affirmed at 'AA+'

- France Affirmed at 'AA'

- Video: Fitch at Global ABS 2015

- The Why? Forum: Are Markets Too Bearish on Brazil's Currency?

- Fitch Launches New Interactive Version of Navigator for Corporates

'Inside Credit' is a weekly snapshot of Fitch Ratings' noteworthy content, selected from all sectors and regions. To receive the weekly edition, distributed every Friday at 8am ET, please sign up here:

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Contacts

Fitch Ratings
Media Relations
Alyssa Castelli, New York
+1 212-908-0540
alyssa.castelli@fitchratings.com

Contacts

Fitch Ratings
Media Relations
Alyssa Castelli, New York
+1 212-908-0540
alyssa.castelli@fitchratings.com