News and Information

In this section, CreditPulse will cover newsworthy topics relevant to the credit risk function in a unique manner that increases perspective and includes specific information not found anywhere else.  The information is always accurate and unbiased.

Recent Articles

IBM's many advertisements, the visibility of its CEO and high stock price give the impression of a successful company, but a closer look shows otherwise.

In an ominous sign, International Business Machines Corp. is having to wait longer and longer to receive payments even as it attracts fewer and fewer customers in a sign that the company known for Big Data is having big problems generating new business.

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Troubles at Toshiba Corp highlight problems with Japan's conglomerates and why they have much lower market values than those in other nations of the world.

Japanese conglomerates have market values much lower than their counterparts in the United States, Europe and South Korea despite trading on one of the largest, most advanced exchanges in the world, according to research by CreditPulse.

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The main force behind intensive banking regulations in recent years is stepping down to pave way for Trump appointee. "Zombie banks."

Daniel Tarullo, the heavy-handed Fed governor who has been a nightmare for the U.S. banking system, will be resigning his board seat in April he wrote in a letter to President Donald Trump last Friday.

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Ratings firm analyst sees stable outlook for China in 2017 but warns things could change quickly if economic imbalances continue.  "A rise in financial fragilities."

"The concern in China is high and stable growth has been accompanied by a rise in imbalances in financial fragilities one of which is a buildup in debt, which is now 200 percent of GDP or higher depending on how you measure it," said Stephen Schultz, the head of APAC sovereigns at Fitch Ratings.

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After forecasting a minimum of three rate increases for 2016, the Fed finally does raise its benchmark rate 25 basis points in its first meeting after the election of Donald Trump as President. 

The U.S. Federal Reserve raised its short-term federal funds rate by 1/4 percentage point on Wednesday bringing the all-important benchmark rate to 0.75, its highest level since before the Fed took interest rates to zero in December 2008, the year of the credit crisis.

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Average long-term debt for independent oil & gas explorers has soared in the past three years increasing the bankruptcy risk for some companies. 

With a CSI score of 2.40, high credit standards and a seemingly strong balance sheet, Canadian oil & gas explorer Athabasca Oil Corp. figures to be a low bankruptcy risk.  But, a closer examination reveals a massive amount of long-term debt, over six times annual revenue

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America's top securities regulator, SEC Chair Mary Jo White, sounds the warning bell on the lofty valuations of private pre-IPO business start-ups known as unicorns.  "Nearly all venture valuations are highly subjective." 

Securities and Exchange Commission (SEC) Chair Mary Jo White issued a stern reminder of the risks posed by a new breed of private Silicon Valley start-ups known as unicorns whose valuations are as high as the largest publicly-traded companies but without the regulation,

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CreditPulse recaps the fascinating year of 2015 with our year-end montage of insightful comments from noteworthy people around the world.  "Monetary policy is important, but it is not omnipotent." 

"Central banks in the U.S., Japan and Europe are trapped in a loop," wrote economist David Malpass (upper left corner), the former deputy assistant Treasury secretary in the Reagan adminstration, on January 22, 2015 in a Wall Street Journal editorial.

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In the past year, Brazil's Petrobras has been the poster-child for credit risk among oil and gas majors, but its Mexico's state-owned oil company PEMEX that is in much bigger trouble.

On November 3, 2015, CreditPulse published the latest industry benchmarks for 32 of the world's largest oil and petroleum refining companies for which financial data is obtainable as part of its Credit Standards Index (CSI), an index that tracks industry and company results in the areas of credit risk, receivables effeciency, operating cash flow, liquidity and solvency.

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On May 2013, the International Monetary Fund (IMF) admitted to violating its own credit protocol in its handling of the 2010 Greek bailout.

In an internal document marked "strictly confidential," the IMF said it badly underestimated the damage that its prescriptions of austerity would do to Greece's economy.  Furthermore, the agency conceded that it bent its own rules to make Greece's burgeoning debt seem sustainable even though the country failed on three of its four criteria to qualify for aid. 

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