The author has been described by News Ltd as an "iconoclast", "Svengali", a pollie's "economist muse", and "pungently accurate". Fairfax says he is a "Renaissance man" and "one of Australia’s most respected analysts." Stephen Koukoulas concludes that he is "85% right", and "would make a great Opposition leader." Terry McCrann claims the author thinks "‘nuance’ is a trendy village in the south of France", but can be "scintillating" when he thinks "clearly". The ACTU reckons he’s "an enigma wrapped in a Bloomberg terminal, wrapped in some apparently well-honed abs."

Tuesday, January 10, 2012

Just 53 global corporate defaults in 2011

From CBA:

For those that like stats, 2011 finished with just 53 global corporate defaults according to S&P. In 2010, 81 global corporate issuers defaulted, which was well down on 2009’s 265 (the prior recession in 2001 had 229 defaults). The defaults occurred mainly in the US, with 39 defaults, Europe had only 4, and other developed countries (Australia, Canada, Japan and New Zealand) had a total of 7, leaving just 3 in emerging markets.

S&P noted that distressed exchanges, which had led default activity in 2009, accounting for just 11 defaults in 2011, followed by 21 missed principal/interest payment defaults, and 13 bankruptcy‑related. Finally, Bloomberg calculated that ECM activity in Australia and NZ showed a 29% decrease in activities from US$29.1bn in 2010 to US$20.5bn in 2011. The number of issues decreased 10% from 526 deals in 2010 to 472 in 2011. Syndicated loans totalled US$132.2bn from 283 deals in 2011, which make up a 56% increase from the proceeds raised in 2010. Australia domestic bond issuance reached A$91.9bn, a 20% decline from A$114.8bn last year. The number of issues closed at 198. Kangaroo bond market issuance decreased by 23% from A$37.3bn last year to A$28.8bn in 2011. NZ bond issuance increased 38% to NZ$9.3bn. And Australia and NZ international bond issuance fell 13 5% from US$79 6bn in 2010 to US$68 8bn in 2011.