Investor Presentaiton
Basis points (bps)
Constructive Go-Forward Market Conditions:
Lower Defaults, Tighter Spreads and Accelerating M&A
U.S. HY Bond Spreads 1, 2 and U.S. Spec Grade Default Rate 1,3
Global M&A Announced Transactions ($B) 1,4,5
1,000
900
800
700
600
500
400
300
200
100
0
2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21
1,390
10%
1,221
1,188
9%
1,053
8%
7%
742
6%
5%
4%
3%
2%
1%
0%
959
730
944
Ill
364
2Q19
3Q19
4Q19
1Q20
2Q20 3Q20 4Q20 1Q21 2Q21
U.S. HY Bond Spreads (L)
-U.S. Spec Grade Default Rate (R)
1.
Reported data through June 30, 2021.
2.
Bond spreads as of the last day of each month. Source: St. Louis Fed Database.
3.
4.
5.
Trailing twelve months U.S. speculative grade corporate default rates. Dashed lines represent forecast. Source: Moody's Investors Service "June 2021 Default Report" published July 11, 2021.
Source: Bloomberg.
Global M&A announced transactions include transactions funded by, or expected to be funded by, any combination of debt, equity or cash.
Moody's | Better decisions
2Q 2021 Investor Presentation 19View entire presentation