KBRA Analytics examines how the correction of the economy and markets following the massive distortions introduced by the COVID-19 pandemic is likely to affect the corporate credit landscape.

As the Federal Reserve continues to address high inflation, its money tightening policies are driving the cost of capital back above its longer-term average. Draining liquidity out of the system will raise the bar for acceptable returns which, in turn, should unleash capitalism’s creative destruction, something that has been dormant through much of the ultra-low interest rate period.

In this new paradigm, cash flow resiliency will be tested against not only higher rates, but also slower growth, technological disruption, higher costs associated with the energy transition, as well as increased geopolitical uncertainty.

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About KBRA Analytics

KBRA Analytics, LLC (KBRA Analytics) is our premier product platform for high quality data and advanced analytics. Our seasoned teams of industry specialists across each product provide unparalleled insight creating a foundation of deeper analysis and rapid discovery for users. KBRA Analytics is an affiliate of Kroll Bond Rating Agency, LLC (KBRA). KBRA is a full-service credit rating agency registered in the U.S., designated to provide structured finance ratings in Canada, and with credit rating affiliates registered in the EU and UK.

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