WEB SEMINAR ARCHIVE

Originally broadcast on May 20, 2009

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Navigating the Credit Crisis

The challenge for corporate risk managers and treasurers is how to balance the need to mitigate exposure to loss without derailing the core activities of the broader organization and compounding problems. Supplier chain worries, customer terms of trade, and treasury asset risk all will require some new approaches and some new tools.  

Corporate risk managers have to deal with an unprecedented credit crisis that will not follow the historical pattern of a spike in defaults and rapid recovery. Defaults will continue to soar and ratchet around all-time multi-year highs while trade claims and unsecured recoveries will hit all-time lows.

Risk managers must have access to the tools that can assist them in the current economic and financial market turmoil.  CreditSights, one of the leading independent credit research and risk analysis firms utilized by the largest institutional debt investors, offers a range of products and services to manage counterparty credit risk and assess the fallout from market volatility.   

In our upcoming presentation on current credit market conditions, Louise Purtle, CreditSights Chief Strategist, and Chris Taggert, CreditSights Senior Loan Strategist, will look at the numerous implications of the ground-breaking developments we have experienced in the last year and will speak to a range of factors that risk managers need to understand, including:

·        How the economic backdrop is driving a cascading effect of sliding cash flow, reduced capex, and defensive investment policies from the consumer to the corporate sector.

·        The threat of fewer financing options, what that means for companies in the future, and how that might affect default and recovery rates.

·        The impact of tight DIP financing and limited exit strategies on asset and equity valuations.  

·        The long-term implications of bank restructuring, government intervention, and the various stimulus programs (TARP, TALF, PPIP)

·        The sharp widening of commercial paper rates vs. treasuries, lingering dysfunction in the short-term funding markets, and the prospects for a return to normalcy in the money markets.

·        Managing working capital risk in a period of heightened volatility and fewer funding options while also not sacrificing business in the interests of excessive customer defensiveness and credit restrictions.

Louise Purtle Chief Strategist CreditSights, Inc. VIEW BIO

Chris Taggert CFA Senior Analyst - Loan Strategy CreditSights, Inc. VIEW BIO

Register to view the archived recording.