9 October 2008
Recovery Index - Please Provide Your Feedback
The Corporate Executive Board is developing a "Recovery Index" aimed at identifying leading indicators of a reversal in credit and real estate markets. Click here to preview the metrics. What would you include on a "recovery dashboard"? Please send us your feedback.
>Click Here to Provide Your Feedback
As Small Business Credit Tightens, Assess Options for Keeping Distressed Suppliers Afloat
CNN Money, 6 October 2008
As another sign that the credit squeeze is hitting "Main Street," the number of loans guaranteed through the Small Business Administration dropped 30% for fiscal year 2008.
Our View: Members have expressed considerable concern about increased small business supplier insolvency risks and the disruption this would cause their operations. Without access to credit and given a declining economic picture, suppliers will not be investing in much needed capacity expansion (keeping input prices high) and may not be able to finance working capital (threatening their ability to fill orders and continue operating). Click here for an analysis of strategies for helping distressed suppliers.
IMF Predicts US and EU Credit Growth Will Not Recover Until 2010
International Monetary Fund, 7 October 2008
The IMF predicts that credit growth in the US and EU will slow to near zero before rising again in 2010. To avoid further disorder in the global economy – and limit its spread to emerging economies – the IMF proposes supporting asset prices, recapitalizing using the public sector balance sheet, and providing liquidity to the financial sector.
Daily Capital Markets Review: Bernake Signals Readiness to Cut Rates as Markets Tumble
Corporate Executive Board, 7 October 2008
This five page summary includes news items regarding global liquidity, the TED spread, commercial paper and T-bill rates, currencies and commodities, and corporate debt spreads. If you would like to receive the Review after markets close (as opposed to the next morning), please click here.
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