Fidest – Agenzia giornalistica/press agency

Quotidiano di informazione – Anno 34 n° 316

Posts Tagged ‘stable’

Stable credit market as property companies’ shares reach new high

Posted by fidest press agency su venerdì, 5 luglio 2019

In the July issue of CREDI, the Main index increases from 50.3 to 50.8 indicating a slightly improved credit market. Property companies maintain a positive view of the credit market, while banks are increasingly pessimistic about the future.“This year’s second CREDI survey reflects a stable credit market, where improved access to credit and extended credit durations counteract expectations of higher credit margins. The CREDI Main index is boosted in particular by an improved perception of the current situation among banks. However, banks are increasingly pessimistic going forward as their Expectations index falls to its second-lowest point in the history of CREDI. Furthermore, the average interest rate of listed property companies increased slightly to 2.0 per cent, marking the end of the trend of decreasing interest rates that lasted for 21 quarters,” says Martin Malhotra, Project Manager at Catella.“The equity market has rebound strongly this year, with the total return of the Stockholm OMX 30 index being nearly 20 per cent. The main driver has been the U-turns of the major central banks and the expectation that we will see lower interest rates and more quantitative easing from the central banks going forward. The Swedish equity market is a reasonably good leading indicator of the CREDI Main index, and its development suggests that we will see stable credit sentiments during the coming quarters,” says Arvid Lindqvist, Head of Research at Catella.“The reduction in long-term interest rates has also been reflected in property companies’ preference shares, where the average dividend has fallen to 6.1 per cent since the turn of the year. Also, as the volume-growth of outstanding bonds continues to slow down, the bond market’s share of the listed property companies’ debt has remained at 28 per cent,” Martin Malhotra concludes.The Catella Real Estate Debt Indicator (CREDI) is attached and can also be downloaded from CREDI consists of two parts: one is an index based on a survey of listed property companies and active banks, and the other a set of indices and analyses based on publicly available data.

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Best’s Market Segment Outlook: Japan Non-Life Sector Is Stable

Posted by fidest press agency su domenica, 28 ottobre 2018

A.M. Best has a stable outlook on Japan’s non-life insurance sector, despite the elevated risks of catastrophe losses and modest economic expansion.A new Best’s Market Segment Report, titled, “Market Segment Outlook: Japan Non-Life,” states that private companies operating in Japan’s non-life insurance sector hold solid risk-adjusted capital positions and profitable underwriting results despite economic- and weather-related pressures. In addition, the market has demonstrated stable pricing conditions. However, the industry has been facing medium- to long-term challenges to grow its premium base, due to modest economic growth, falling accident rates resulting from advanced driver-assistance systems and the gradual shift in population demographics. Despite these ongoing and escalating challenges, most private non-life insurers in Japan have continued to grow premium revenue, generate underwriting profits and maintain solid risk-adjusted capital positions that are supportive of their risk profiles.Japan’s overall market performance has remained quite profitable. Based on the results disclosed by the three largest groups, which collectively account for more than 85% of net premiums within the domestic insurance market, the weighted average combined ratios for the private insurance segment generally remained under 95% over the most-recent five-year period.
In fiscal-year 2017 (ending March 31, 2018), the industry’s underwriting results remained strong, despite some deterioration due to several natural disasters, including two typhoons and one heavy snow event. The resulting increase in the industry’s combined ratio was approximately three percentage points. Excluding losses caused by natural disasters, the industry’s combined ratio remained stable at approximately 90%, reflecting the strong underlying profits of the industry, supported by continued premium growth, tight cost controls and adequate pricing for most businesses.A.M. Best believes two main factors will continue to foster stable pricing conditions among the non-life insurers in Japan: the presence of an effective reference rate system and an oligopolistic industry structure. Additionally, in spite of the performance pressures arising from recent weather-related events, A.M. Best expects the industry to maintain very strong risk-adjusted capital positions.

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CREDI indicates a stable credit market, despite growing pessimism among banks

Posted by fidest press agency su giovedì, 4 ottobre 2018

In the October issue of the Catella Real Estate Debt Indicator (CREDI), the Main index falls slightly from 54.3 to 49.6, following three straight quarters of improving credit terms. Property companies remain positive, while the banks’ view of the credit market has worsened. Furthermore, the bond market is showing clear signs of levelling out.“This year’s third CREDI survey indicates a stabilization in the credit market, following three quarters with noticeably improved sentiments. The banks’ optimism from the last survey has shifted to a more pessimistic view of the credit market, while property companies remain positive. Credit margins have decreased and credit terms have been extended, but going forward the market believes we will see increased credit margins and reduced access to debt financing. However, the current situation remains positive with the average interest rate for property companies on Nasdaq Stockholm Main Market falling to a record low 2.1 per cent,” says Martin Malhotra, Project Manager at Catella.“Low market interest rates and tight interest margins have made it possible for property companies to be competitive in bidding processes. However, we have entered the final phase of the economic cycle and the direction going forward is gradually higher rates from the central banks, who will also reduce their purchasing of securities. For property companies, this will entail slightly higher market interest rates in general and higher interest margins for companies with higher-risk business models in particular,” says Arvid Lindqvist, Head of Research at Catella.“We are also observing a stabilization in the bond market. Last year was a record year for property-related corporate bonds on Nasdaq Stockholm Main Market, as the volume of outstanding bonds increased by 80 per cent from SEK 51 billion to SEK 91 billion. However, we are now seeing that the bonds’ share of interest-bearing debt has levelled out around the 25 per cent mark for the second straight quarter, while the outstanding volume has increased by merely 4 per cent,” Martin Malhotra concludes.The twenty-fourth edition of the Catella Real Estate Debt Indicator (CREDI) is attached and can also be downloaded from CREDI consists of two parts: one is an index based on a survey of listed property companies and active banks, and the other a set of indices based on publicly available data. CREDI also includes an analysis of preference shares and an overview of the property market.

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The “stupidity pact” is not stable

Posted by fidest press agency su giovedì, 1 Maggio 2014

romano prodiThe positions recently adopted by the French and Italian authorities concerning the 3% of public deficit threshold have imparted a fresh boost to the recurring debate on the Stability and Growth Pact, which former Commission President Romano Prodi once called a “stupid” pact. As the member states present their stability or convergence programmes to the European authorities and with the up-coming European elections of May 2014, it is more important than ever to clarify the terms of this debate. It is the purpose of Yves Bertoncini and Sofia Fernandes analysis, based on three complementary statements :
1. The Stability and Growth Pact is not a dogma carved in stone
2. The Stability Pact is a pact resting on political trust among the member states
3. The debate on the Stability Pact is also economic in nature
If the Stability Pact is not completely stable, it is not completely stupid either. Let those countries in difficulty set their economies back on track, let them make choices designed to bring down unemployment and to boost growth – the rest “will be added to them”.

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