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Credit risk improves in US

Jan 29, 2013 Walt Wojciechowski

Credit risk improves in US

Businesses and consumers in the United States have been consistently at risk of turbulent economic conditions since the Great Recession. As a result, credit risk management among businesses, financial institutions and investment agencies has become increasingly difficult, as fluctuations in various economic segments make for much more complex decision-making practices.

Bloomberg recently reported that the latest Markit CDX North American Grade Index logged a drop in U.S. corporate credit risk last week, the first such decrease in roughly three days. According to the news provider, the days leading up to this improvement were marked by falling business credit ratings, likely the result of political uncertainty regarding the final decisions about spending cuts and tax increases.

However, the rating on January 15 was the strongest experienced since the second day of the year, hitting 92.8 basis points. The source explained that investors, as well as corporate credit rating industry professionals, continue to be most concerned with the debt ceiling, which will rapidly approach should Washington fail to devise a new strategy.

Enterprise executives and investors should consider using a firm that specializes in credit risk management to ensure all decisions are made in a safe and secure fashion.