The Top Line

The much-awaited U.S payrolls number last Friday--which received a mixed response from markets--was quickly overshadowed by turmoil within the banking sector. The Federal Reserve announced on Sunday that it will make available additional liquidity to eligible depository institutions, to help assure banks have the ability to meet the needs of all their depositors. The market focus this week is likely to remain on banks and potential contagion effects, but macro insights--with Tuesday's release of U.S CPI numbers and Thursday's ECB meeting--will also remain prominent.

Key Takeaways

  • Downgrades continued to outpace upgrades last week, led by speculative-grade media and entertainment issuers.
  • Japanese automaker Nissan Motor Co. Ltd. became a fallen angel after it was downgraded to speculative grade. The group's competitiveness and profitability will likely remain weaker than peers.
  • Issuance dropped last week across all regions while markets ended the week sharply negative.

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