Insight Weekly: US companies boost liquidity; auto insurers hike rates; office sector risk rises

US companies boost liquidity positions in Q2

Median cash ratios increased again in the second quarter as companies hold more cash relative to their liabilities.

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US companies reduce debt loads as interest burden grows

US companies deleveraged further in the second quarter, with a noticeable acceleration by those with lower credit ratings.

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US companies becoming more efficient by cutting expenses

The median ratio of operating expenses compared to total revenues for companies rated investment grade by S&P Global Ratings declined to 82.8% in the second quarter.

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Rate increases push bank bond portfolios further underwater  

US bank projections indicate it will be years before the losses reverse, though earnings are enabling many to keep building tangible equity.

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US banks appear confident as commercial real estate delinquencies rise             

Commercial real estate delinquencies climbed for the third consecutive quarter, but banks are working to manage down exposures and say that reserve builds mean they are prepared.

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Financials Research: Bankers less optimistic on future growth – S&P survey

The results of S&P Global Market Intelligence's second-quarter survey of 150 US financial institution clients on questions related to loan growth, recession risk and M&A appetite.

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Ukrainian banks' bulging profits under pressure amid interest rate cuts

The cutting of the key rate by 300 basis points in July and further drops in the pipeline will reduce the income lenders have generated from central bank deposit certificates.

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Major Japanese banks may issue loss-absorbing capacity bonds as demand returns

Major Japanese banks are likely to follow one of their peers in issuing total loss-absorbing capacity bonds to cover maturing debt, as investor demand returns after the furor over the write-down of Credit Suisse's debt.

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US private auto insurance rates see double-digit jump in 2023   

The countrywide average increase for private auto insurance rates was 11% through Aug. 18, 2023, as measured by S&P Global Market Intelligence's RateWatch application.

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Some fintechs walk away from charter applications, leveraging bank partnerships         

Some financial technology companies are rethinking their need for a bank charter as a result of the lengthy application process and an expected higher bar for eligibility.

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Lower valuations, tough refinancing ratchet up risk for US office sector

Office properties are feeling pressure from vacancies, falling valuations and rising interest rates, though analysts said there is a market for quality office space.

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Private equity investment in movies, entertainment on track for 5-year low      

Through Aug. 8, private equity and venture capital firms have announced $1.48 billion of investments in the movies and entertainment sector worldwide this year, according to S&P Global Market Intelligence data.

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Malaysian economy moderates in mid-2023

The pace of Malaysia's economic expansion moderated in the second quarter due to several headwinds, including slowing merchandise export growth amid the economic slowdown in key markets.

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Hawaiian Electric stock price recovering, but financial, legal pressures mount

Hawaiian Electric Industries Inc.'s stock price regained some ground after an internal investigation determined its power lines did not cause wildfires that ravaged Maui, but the utility remains on precarious financial footing.

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RRA Research: GE, Vestas top US leaderboard in installed wind capacity, performance

Average wind turbine size in the US continues to increase, with machines in 2023 averaging nearly 3.9 GW of capacity. General Electric leads all companies in both installed turbine capacity and overall performance.

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Google sees trailblazer role in search for 24/7 clean energy

Having begun procuring renewable energy "way before it was trendy," Google is now three years into an effort to power its sprawling global business with renewables around the clock. Analysts said its quest has already moved markets.

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451 Research: The metaverse and generative AI make for a powerful combination

As large language models generate reports, poems and sketches, and text-to-image tech brings image creation to the masses, what about the metaverse? It needs an almost infinite amount of 3D content and animation. Generative AI is doing that, too.

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Metals and Mining Research: Nickel CBS August 2023 – Prices drop; China's refined nickel capacity expands

In its monthly Nickel Commodity Briefing Service (CBS) report, S&P Global Commodity Insights discusses the nickel market within the broader macroeconomic environment and provides rolling five-year supply, demand and price forecasts.

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Halloween creeps a little closer: Seasonal supply chains accelerate

Retailers are preparing for Halloween sales earlier than ever, in part due to concerns about a downturn in consumer spending. That has led to earlier shipments of Halloween products than prior years, with decorations outstripping outfits.

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US banks dash back to dealmaking as their M&A appetite returns

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Deal Tracker: $6.97B New Relic buyout ranks as 3rd-largest infotech deal YTD

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Deal Profile: Innovations Financial CU to acquire First National Bank Northwest Florida

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Deal Profile: North Carolina-based Coastal Bank to merge into in-state peer Providence Bank

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