COVID-19 To Hit Bonds

We're sure by now that you have seen the dramatic volatility in the stock market, along with the precipitous drop. But the recent economic slowdown caused by COVID-19 will officially hit the bond market soon. Moody's announced that it was undertaking a global review of bond ratings, with a mass of downgrade or downgrade warnings coming in the next several weeks. The review of airlines, cruise ship companies, and oil companies has already begun. About 9 percent of the companies Moody's reviews in Europe have significant exposure, and another 54 percent have moderate exposure. About 16 percent of the North American companies rated are at high risk of a ratings downgrade.