The New York Stock Exchange is on pace to regain the U.S. stock market listings crown from rival Nasdaq this year after attracting bigger blank-check company IPOs than Nasdaq. So far, companies have raised $66B through listings on NYSE this year vs. $61B on Nasdaq (almost two-thirds of the proceeds raised on NYSE came from special purpose acquisition companies.
S&P Global Ratings sees global debt, as a percentage of GDP, swelling to a record 265% this year, and insolvencies and defaults rising to levels not seen since the 2009 crisis. A near-term crisis, though, is unlikely given the expected economic recovery, a COVID-19 vaccine by mid-2021, favorable financing conditions, and sovereign, corporate and household spending and borrowing behaviors. "The heavier corporate debt will delay the recovery of credit metrics beyond 2022 for the hardest hit sectors (such as airlines, leisure and oil and gas)," according to the report.
While recent pressure on equity markets could be easing, oil prices slid on lingering worries that international lockdowns will sap energy demand. Off by nearly 6% overnight, crude futures have pared some losses this morning. Libya and Iraq are also boosting their production, causing a rise in overall supply from OPEC , despite having reduced quotas across its other members. While the group meets again on Nov. 10 and Dec. 1 to discuss policy, there doesn't appear to be a great deal of leeway for further reductions.
With Northwest Quadrant Wealth Management a Registered Investment Advisor I am Josh Fenili.