Morningstar DBRS

The latest edition of our Global Credit Insights monthly newsletter is now available on LinkedIn!   Our June 2024 edition includes important investor takeaways on Private Credit in Europe, elections in Mexico and India, U.S. RMBS, and more. Subscribe today so you get notified when we publish the next edition in July!

Read our latest sports finance report on the credit impact of relegation on European football clubs: https://lnkd.in/eE8FmWK6 Key Highlights: -- Relegation risk weighs on credit quality of European football clubs due to severe decline in media revenues, which can trigger negative rating action -- Lack of material financial support from leagues in Europe to their clubs means a significant credit rating uplift for clubs' credit profiles is not common for stadium financings #SportsFinance

As Hurricane Beryl, the first major hurricane of the 2024 Atlantic hurricane season in the Northern Hemisphere, passes through Texas and Louisiana, our #Insurance and #FinancialInstitutions teams take a look at the impact it could have on the insurance industry overall: https://lnkd.in/eyZPrP9w Key Highlights: -- Beryl became the earliest Category 5 hurricane on record, suggesting an above-average hurricane season in 2024 -- Despite the initial strength of Hurricane Beryl in the Caribbean and projected landfall in Texas as a Category 2 hurricane, we expect insured losses to remain manageable for the insurance industry -- However, if an above-normal hurricane season materializes, we anticipate that U.S. P&C insurers’ financial performance will suffer this year depending on their risk retention and reinsurance strategies

Make sure you don't miss our latest episode of the European Securitisation Insights podcast featuring commentary on last week's U.K. general election. Host Mudasar Chaudhry, Morningstar DBRS Head of European Structured Finance Research, is joined by analysts Adriana Alvarado and Ketan Thaker to discuss the impact of the new Labour government on the UK’s housing market. Listen here: https://lnkd.in/eicNuntD #SovereignRatings #StructuredFinance

On July 3, the French Banking Supervisor publicly released its Decision No. 2024-C-18, which sets new weights for banks' exposures related to French cities, intercity structures, departments, and regions, and now treats them as exposures to the central government. In an environment with multiple financial headwinds, this decision should further improve French sub-sovereign access to and cost of funding, at a time when their investment needs are significant. Read more here: https://lnkd.in/eBBB-iWt #SovereignRatings

Wero, a digital wallet by the European Payment Initiative, has launched in certain countries, and could reduce the dominance of large U.S. players if the initiative is successful. In our latest #FinancialInstitutions commentary, we unpack the hurdles that could stand in the way of Wero's success. Read it here: https://lnkd.in/eMvu7xFJ

In our latest episode of the European Securitisation Insights podcast, host Mudasar Chaudhry, Morningstar DBRS Head of European Structured Finance Research, is joined by analysts Adriana Alvarado and Ketan Thaker to discuss the impact of the new Labour government on the UK’s housing market. Listen here: https://lnkd.in/eicNuntD #SovereignRatings #StructuredFinance

Read why Morningstar DBRS expects the cyber #insurance market to remain the fastest-growing insurance business line for the rest of the decade: https://lnkd.in/eJt6XDSc Highlights: -- Regulatory requirements to improve cyber defenses and protect sensitive personal data are increasing the potential costs associated with cyber-attacks, prompting additional demand of cyber insurance products -- Cyber insurance demand is also being fueled by rising geopolitical tensions and the proliferation of state-proxy attacks that can be misidentified as common criminal activity and covered under existing policies #FinancialInstitutions

Since early March, U.S. and European gas prices have climbed steadily in the anticipation—and eventual onset—of much warmer than normal early summer temperatures even as producers curbed supply to contend with the glut built up during the past mild winter. Although U.S. and European gas storage inventories have been drawn down from early 2024, they remain at heightened levels for this time of year. In our latest #Energy and #NaturalResources commentary, read how increased demand for gas-generated electricity could impact inventory entering the 2024-25 winter season. Find it here: https://lnkd.in/edmHdM6X

In the lead-up to the UK general election on 4th July, voting intention polls reflect the likelihood the Labour party will form the next government, marking a notable difference for UK politics after 14 years of Conservative Party leadership. The challenges the next government will face are significant, including growing the economy, improving public finances and services, and strengthening energy security. Read our latest commentary, which unpacks three key challenges for the new government and the policy pledges that the Labour Party presented in its manifesto during the election campaign: https://lnkd.in/eJuB5EFw #SovereignRatings