Moody's Talks - Focus on Finance

The boost banks have enjoyed for the last two years will start to fade as high rates translate into higher funding costs and lower growth. But the outlook for banks is not so gloomy everywhere.Speaker: Felipe Carvallo, VP-Senior Credit Officer, Moody’s Investors ServiceHost: Erin McDermott, AVP – Research Writer, Moody’s Investors Service

Reduced economic growth could lower financial institutions’ profitability, but there are also opportunities to sell retirement products and new forms of insurance.Speakers: Qian Zhu, VP-Senior Credit Officer, Moody’s Investors Service; Kelvin Kwok, AVP-Analyst, Moody’s Investors ServiceHosts: Danielle Reed, VP – Senior Research Writer, Moody’s Investors ServiceRelated Research:Demographics – China: Aging population, smaller workforce will have broad implications across sectorsLife Insurance – China: Aging population offers growth opportunities, with risks and competitionInsurance – China: Latest policies for health insurance improve diversification but raise underwriting risks

Moody's analysts discuss managing risks from rising interest rates, funding and liquidity of universal banks, interest rate risk in banking book, characteristics of universal banks, market funding risks for universal banks, and the true liquidity position of banks.

Private credit lenders compete with banks for leveraged buyouts, increasing risk. Concentration of private credit among a few major asset managers raises concerns. Affiliation of asset managers and insurance companies contributes to an expanding lending loop. Benefits and risks of insurers partnering with asset managers in private credit sector are examined.

Moody’s analysts C.J. Wong and Yulia Wan discuss ongoing real estate market weakness in China and Vietnam, and explain how the credit effects will differ in each country.Speakers: C.J. Wong, Analyst, Moody’s Investors Service; Yulia Wan, VP-Senior Analyst, Moody’s Investors ServiceHosts: Danielle Reed, VP – Senior Research Writer, Moody’s Investors ServiceAdditional Research:Banks – Asia-Pacific: Ongoing real estate sector stress raises credit risks for banks in China and Vietnam

Moody’s analysts Marat Faritov and Cristiano Ventricelli discuss how digital bonds could reshape debt markets, and the hurdles to be overcome before the technology can be more widely adopted.Speakers: Marat Faritov, AVP – Analyst, Moody’s Investors Service; Cristiano Ventricelli, AVP – Analyst, Moody’s Investors ServiceHost: Danielle Reed, VP – Senior Research Writer, Moody’s Investors ServiceRelated Research:Digital bonds' features could transform debt markets over timeUS Congress works toward digital assets rules, but bills lack bipartisan supportCyber risk looms as digital bonds gain tractionDecentralized Finance and Digital Assets – Europe: Swiss digital bonds benefit from favorable existing and adapted federal lawsDeFi & Digital Assets: What is digital finance? Explanation and glossary

Moody’s analysts Laline Carvalho-Neff and James Eck explain how reinsurers have boosted their profitability, even as natural catastrophes have grown more frequent and more severe.Speakers: Laline Carvalho-Neff, VP-Senior Analyst, Moody’s Investors Service; James Eck, VP-Senior Credit Officer, Moody’s Investors ServiceHosts: Danielle Reed, VP – Senior Research Writer, Moody’s Investors ServiceRelated Research:Reinsurance – Global: Stable outlook as higher pricing restores more favorable risk and reward dynamicP&C Insurance and State Government — US: Sharp pricing hikes draw reinsurers to Florida; insurance market strains continueReinsurance – Global: Reinsurance prices to keep rising through 2024, buyer survey suggests

Moody’s analysts discuss how a rate rise would affect Japan’s banks, Swedish banks’ high exposure to indebted real estate firms, and the stability of Swiss domestic bank deposits.Speakers: Tetsuya Yamamoto, VP – Senior Credit Officer, Moody’s Investors Service; Louise Welin, VP – Senior Credit Officer, Moody’s Investors Service; Goetz Thurm, VP Senior Analyst, Moody’s Investors ServiceHosts: Danielle Reed, VP – Senior Research Writer, Moody’s Investors Service; Myles Neligan, VP – Senior Research Writer, Moody’s Investors ServiceRelated Research:Banks – Japan: A rise in domestic interest rates would bring more benefits than risksFAQ: Sweden's real estate turmoil creates risks for local banksBanks – Switzerland: Stable domestic deposits, strong liquidity reduce the risk of deposit outflows

Moody’s analysts discuss the economic and credit outlook for China, including the role of local government financing vehicles (LGFVs) and their debt burdens, and the latest on the property sector.Speakers: Lillian Li, VP-Senior Credit Officer, Moody’s Investors Service; Jessie Tung, VP-Senior Credit Officer, Moody’s Investors ServiceHost: Vittoria Zoli, Analyst – Emerging Markets, Moody’s Investors Service

Steve Tu discusses FedNow, a new US digital payments system, and why it could exacerbate deposit flight risk for banks. Farooq Khan explains the risks of higher interest rates for UK mortgage lenders.Speakers: Stephen Tu, VP – Senior Credit Officer, Moody’s Investors Service; Farooq Khan, VP – Senior Analyst, Moody’s Investors ServiceHosts: Danielle Reed, VP – Senior Research Writer, Moody’s Investors Service; Myles Neligan, VP – Senior Research Writer, Moody’s Investors ServiceRelated Research:Banks – North America: FedNow launch may lower transaction costs, but exacerbate funding risks for banksAsset and customer relations risks intensify for UK lenders as rates keep rising