Then, on May 27, 2019, we raised the global scale issuer credit rating on USJ to 'CCC+' from 'SD', reflecting relief in the company's liquidity pressures following the conclusion of the debt exchange offer. Among his prior experiences, he was founding CIO of New York Citys Upper Manhattan Empowerment Zone, a federal initiative to bring new resources to distressed urban communities. Cumulative default rates are one minus the product of the proportion of survivors (nondefaulters). Valay Shah Prior to joining in 2019, Jintao was a portfolio manager in Emerging Markets Corporate Credit at Barings Asset Management where his responsibilities included portfolio management, credit research, and trading, and where he managed strategies including EM Corporate Bond fund, Short Duration Fund and the Insurance accounts as a voting member of the investment committee. On Dec. 4, 2019, S&P Global Ratings withdrew its issuer credit rating on the company. Madhura started her career with Arthur Andersen in the Assurance and Business advisory division. Roger Orf The tax treatment of certain derivatives inwhich a Fund invests may be unclear and thus subject torecharacterization. Prior to joining Apollo, he was Co-Head of North American Investor Relations and Fundraising at Angelo Gordon. Across sectors, the average difference between an industry's median initial rating and the median initial rating of its defaulters was about 1.3 notches. Donna is a Fellow of the Chartered Institute of Personnel and Development and was a trustee of Visionary and currently a board member for a startup GrandBequest. This is Adeyemos second tour at the Treasury Department. For example, 'AA+' rated issuers were still rated 'AA+' one year later 78.9% of the time, and 'AA' rated issuers were still rated 'AA' one year later 80.8% of the time. Johannes Worsoe is Partner and Chief Financial Officer of Apollo Asset Management. Czech carmaker Skoda Auto, part of the Volkswagen group, is still aiming for sales of at least 1 million cars a year but is targeting profitability over higher volumes, its CEO was quoted as saying on Monday. He works within the AGRE-Asia DEL department, where his responsibilities include portfolio management, deal origination and covering the South India market to create a pipeline of transaction opportunities for Apollo Real Estate. S&P Global Ratings does not require all issuers with rated debt to have an issuer credit rating. On July 11, 2019, S&P Global Ratings lowered its issuer credit rating on California-based mortgage lending services company Stearns Holdings LLC to 'D' from 'CCC+' following the company's announcement of an agreement with its majority equityholder, Blackstone, to implement a restructuring plan. He currently serves on the Advisory Board of the University of Wisconsin Lubar School of Business and the Greater Milwaukee Committee. She led the World Banks energy investments and policy work on areas including sustainable investing, renewable energy, power, and infrastructure to reduce carbon emissions and founded its Natural Gas Group as a transitional fuel. Managing Director, Credit in Houston. U.S. Local Governments Credit Scenario Builder, Annual Global Trends: Defaults Begin To Pick Up, Lower Ratings Are More Vulnerable To Default, Industry Variations: Energy And Consumer Services Lead Defaults Once Again, Speculative-Grade Ratings Represent About Half Of Corporate Issuers, Transition And Cumulative Default Rates Demonstrate Ratings Performance. She is a board member of Robin Hood, the U.S. Fund for UNICEF and the U.S.-China Business Council. Prior to joining PIMCO in 1998, he worked at Bear Stearns in the asset-backed securities group, as well as T. Rowe Price and Fidelity Investments. Prior to joining Apollo in 2015, KK was Partner at Rezone Investment Advisors. Billy Ross On June 4, 2019, S&P Global Ratings lowered its long-term issuer credit rating on Midland, Texas-based oil and gas exploration and production company Legacy Reserves L.P. to 'D' from 'CCC-'. Google is collecting information about your interaction with this video by using cookies and may use this for targeting their offers. He is currently Head, Americas and Head, Agribusiness. For example, among defaulters that were rated 'B' at origination, the default rate climbs to a high of 18.6% in the third year and decelerates thereafter. Pablo Crespo is Managing Director, Real Assets at Apollo. Each of PDO, PNF and PYN is non-diversified, which means that it may invest its assets in a smaller number of issuers than a diversified Fund. She also sits on the Firms Human Capital Leadership Team. In addition to these subsectors, this study also groups insurance service providers (such as insurance brokers and third-party administrators that are rated according to corporate criteria) with the insurance industry. Prior to joining Apollo in 2021, Vivender was with Goldman Sachs, where he worked most recently as Managing Director, Global Head of Digital in the Asset Management Division. Before joining in 2015, Patrick was Chief Risk Officer of Citibank, N.A., and also served as Citigroup's Institutional Client Group's Chief Credit Officer and Chief Risk Officer of Citis Europe, Middle East & Africa region. The rating action followed the extension of the fund's $168 million maturing revolving credit facilities to June 14, 2019, and the fund's proposal to extend the revolver and term loan maturities to match the expected 2022 end of the fund. On average, there is a negative correlation between the initial rating on a firm and its time to default, if a default occurs. Martin received a degree in Commerce, majoring in Finance and Accounting, from the University of New South Wales. Table 11 presents the average and median times to default from each rating category for all subsequent ratings. Zanvi Patel Like the national grid? Anthony was also Lead Partner and Chief Operating Officer of Apollos Credit business and co-founded the performing credit and structured credit businesses. Rating modifiers. Michael graduated from Hofstra University with a BBS degree in Business Management and Finance and received his JD from Hofstra University School of Law. Marc graduated from Pennsylvania State University with a BS in Accounting. Andrew graduated from Duke University with a BA in History and received a MBA from Harvard Business School. Dave joined Campbell from Intel Corporation, where he served as the Companys first Global Director of Corporate Responsibility. Prior to joining in 2012, Benjamin was a member of the Real Estate Investment Banking group at Goldman Sachs & Co. Benjamin graduated from The College of William and Mary with a BA in Economics and Finance. Before joining Fortune in 2007, Fortt was a senior editor at Business 2.0magazine where he produced the "What Works" section. Our purpose is to drive commerce and prosperity through our unique diversity, and our heritage and values are expressed in our brand promise, here for good. Sean received his BA in Mathematics and Political Science from Emory University. The issuer filed for voluntary bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code. Jeffrey started his career in institutional sales and trading at Refco Inc. Jeffrey graduated from Bucknell University with a BS in Business Administration and a minor in Economics, and received his JD, cum laude, from Fordham University School of Law. Prior to joining in 2016, Christopher was at Antares Capital and GE Capital, and previously was an investment analyst in GE Capital's Asset Based Lending team. Three years later, he founded Citadel, believing that the integration of exceptional talent, advanced quantitative analytics and leading-edge technology would generate consistent, strong long-term performance. Stefanie earned her JD from New York Law School and graduated with a BA in International Relations from Franklin University Switzerland. Prior to joining Apollo in 2022, Courtney was Director on the Investment Team at the Teacher Retirement System of Texas, managing private equity investments in addition to the Firms Private Markets Strategic Partnerships. He began his career with Citigroup in 2006 as a credit trader and currently serves on the Board of Moxe Health and Hertz Corporation. Jane holds a BS in Psychology from University of Scranton, and a MS and Ph.D. in Cognitive/Perceptual Psychology from Adelphi University. Brad Livingston At Columbia Threadneedle Investments, we invest to make a difference in your world, and the wider world. An obligor rated 'SD' (selective default) or 'D' (default) is in default on one or more of its financial obligations, including rated and unrated financial obligations but excluding hybrid instruments classified as regulatory capital or in nonpayment according to terms. Prior to joining in 2016, Erika was with JP Morgan in its Private Bank and in its Institutional Asset Management Group, where she was responsible for managing and driving business with central banks, sovereign wealth funds, national pension funds and supranational clients in Latin America and the Caribbean. Senior Managing Director, Executive Office in Florida. The Fund would also enter into one or more interest rate swap agreementson the same underlying instrument, but take the opposite position (i.e., inthis example, the Fund would make regular payments equal to a fixedinterest rate in return for receiving payments equal to a floating interestrate) with respect to a contract whereby the payment obligations do notcommence until a date following the commencement of the initial leg (theforward leg). Other methods may calculate default rates using only the most recent year's default and rating data, which may yield comparatively low default rates during periods of high rating activity because they ignore prior years' default activity. Robert Rossitto is Managing Director, Credit, at Apollo, where he focuses on various business finance areas including Structured Credit, ACS broker dealer, and Hybrid Value. Arturo graduated with Honors from the Social Sciences School at the University of Buenos Aires with a BA in Sociology and received his MBA from the Stern School of Business at New York University, with a concentration in Finance. Prior to joining in 2016, Brad was with GE Energy Financial Services, where he was Vice President responsible for originating, executing and managing strategic, global infrastructure investments in power, renewables, and oil & gas assets across the capital structure. Partner, Co-Chief Operating Officer, Executive Office in New York. Prior to Mintz, Loretta was a Partner and Co-Head of the Private Funds and Investments practice at Covington & Burling, and a Partner in the private funds practice at OMelveny & Meyers. Apollo Global Management, Inc. (NYSE:APO), Chief Executive Officer, Apollo Global Management. Partner, Private Equity in London. Mathisen was also host of the CNBC series "How I Made My Millions." Jason has led investments across technology, media, telecom, leisure and healthcare sectors, and currently serves on the board of directors of US Acute Care Solutions, Ingenio and Ridgeback Resources. Rodney Thomas He is currently Trustee of Mount St. Mary's University and Chairman of their Master Planning and Investment Committees. Prior to joining in 2010, Reed was a member of the Principal Strategies Group at Goldman Sachs, and a member of the Industrials Investment Banking group at Goldman Sachs before that. Partner, Private Equity in New York. Partner, Real Estate in New York. As one measure of ratings performance, the cumulative share of defaulters was plotted against the cumulative share of issuers by rating in a Lorenz curve to visually render the accuracy of its rank ordering (for definitions and methodology, refer to Appendix II). Zach Forman Gregory Sills Before joining in 2022, Veena was a Managing Director and Co-head of Secondaries at BlackRock Alternative Investors, where she co-founded the SLS business dedicated to private market secondaries. Vids previous career spanned Lloyds Banking Group, JPMorgan and Citi across Europe and Asia, as well as stints in Bahrain and Bermuda predominantly focused on bank and insurance solutions and structured credit. Previously, Gemma was Senior Associate at Korn Ferry in its Global Financial Markets practice, focused on the Asset Management and Alternative Investments sectors. Managing Director, Finance in New York. Managing Director, Credit in New York. Steven McElwain Prior to joining Apollo in 2016, Suzanne was a Senior Legal Counsel at APM Terminals in Singapore and prior to that Suzanne was a Senior Associate in the Private Equity team at CMS Cameron McKenna in London. As Chief Investment Officer, she chairs the firms Investment Committee and oversees the firms fixed income and equity platforms. Sean Finnerty is Managing Director, Credit at Apollo, where he is responsible for capital markets and origination in European Credit. Natalia Tsitoura is Partner, Credit in the European Private Debt team at Apollo. Nelson Peltz is Chief Executive Officer and a founding partner of Trian Fund Management, L.P. (Trian). David Cohen In our opinion, the company should have had the resources to service its debt over the short term, due to recent actions. Vidyasagar (Vid) Pulavarti Prior to joining Barclays, Grant held senior executive positions in the investment banks of Deutsche Bank and Merrill Lynch. She reported extensively for the network on China from the countrys growth to its challenges to the opportunities for U.S. businesses. Suresh Maramreddy Prior to joining in 2022, he worked at Aon as Head of Capital Advisory in Japan Reinsurance Solutions. Michael graduated from Dartmouth College with an AB in Government. Frank graduated from Syracuse University with a BS in accounting, a BS in Finance and a minor in Economics. He serves on the boards of Alphabet, Inc.; Corning, Inc.; Blend, Inc.; and International Flavors & Fragrances, Inc. Mr. Ferguson is also active as an advisor and board member with various private fintech companies. Jacob received a BS in Business Management Finance from Trinity University and is a chartered financial analyst (CFA) charterholder. Janet graduated from St. Catherine University with a BA degree in Communications major with minors in Business and Psychology and received her MBA in finance from the University of St. Thomas. If an issuer defaults or if the rating on the issuer is withdrawn in the middle of the year, then it would be considered rated 'D' or not rated as of Dec. 31 of that particular year. Previously, he was Executive Director and Head of Hedge Funds and Liquid Alternatives at Bank of Singapore and served as CIO of Woori Absolute Partners before that. Managing Director, Finance in New York. Randy Anderson With a lifelong passion for learning, he has also completed executive leadership programs in corporate strategy at Chicago Booth and corporate governance at University of Notre Dame Mendoza School of Business. Partner, Finance in New York. There can be no assurance that all distributions paid by these Funds will be exempt from federal income taxes or applicable state or local income taxes. The company also entered into a forbearance agreement with an ad hoc group of lenders representing more than 50% of the total credit exposure under the first-lien credit agreement. From Jan. 1, 1981, to Dec. 31, 2019, a total of 21,083 first-time-rated organizations were added to form new static pools, while we excluded 2,872 defaulting companies and 10,986 companies that are no longer assigned ratings (NR). On Oct. 3, 2019, S&P Global Ratings downgraded Sheridan Investment Partners I LLC to 'D' from 'SD' after it decided to cease interest payments. Data provided in table 13 also differ from default rates in table 24 owing to the use of the static pool methodology. Sources: S&P Global Ratings Research and S&P Global Market Intelligence's CreditPro. The company elected not to pay the Feb. 19 $22.2 million interest payment on its first-lien term loan due May 10, 2022, as it entered into a forbearance agreement with its first-lien lenders. Before joining Apollo in 2020, Adam was Managing Director in the Private Funds Group at Evercore. She is also a former board member and Chairman of the Investment Committee for VTCs parent company, Mission Square Retirement Corporation (formerly ICMA Retirement Corporation), a provider of retirement services with over $50 billion under management and administration. Alexander serves on the Fordham University President's Council. *U.S., Bermuda, and Cayman Islands. Louis-Jacques Tanguy is Partner, Finance and Chief Accounting Officer and Controller for Apollo Global Management and Apollo Asset Management. He brings nearly 30 years of experience in human capital, having most recently served as the Chief Operating Officer for the People Team and Head of Total Reward at WeWork. Robert is a Certified Public Accountant and earned an MS in Finance from Saint Josephs University and a BS in Accounting from the University of Delaware. Prior to joining in 2018, George was Executive Director in the Commercial Real Estate Finance Group at Goldman Sachs, and Associate Director in the Structured Real Estate Finance Group at Santander before that. Brian Feurtado is Partner, Client and Product Solutions at Apollo and is responsible for leading Apollos Family Office business. Before that, Sang was Director in the Real Estate Capital Markets group at Barclays Capital where he managed New Issue Distribution in North America. Noriaki graduated from Waseda University with a BA degree in international politics and economics. Roger Orf is Partner, Real Assets and Vice-Chairman of the Principal Finance and Real Estate businesses at Apollo, with focus on transaction development for real estate equity and debt, operating partner outreach, significant limited partner matters and general ambassadorial work across the platform. In addition, we viewed the exchange as distressed rather than opportunistic because of the trading levels of the notes. She is based at CNBC Global Headquarters, and her reporting appears on television and CNBCs digital platforms. She serves on the board of directors of Taos Ski Valley. Natalia graduated from Loughborough University in Business Studies. Brent graduated from The Smeal College of Business at Penn State University. Jon Fortt is co-anchor of CNBC's "Squawk Alley" (M-F, 11AM-12PM ET) broadcast live from the New York Stock Exchange. Certain risks associated with investing in a Fund are summarized below. Mark Suter Partner, Real Estate in London. She was named a New York Business Journal Woman of Influence (2016) and a City & State Responsible 100 (2017), and is a graduate of Echoing Greens Direct Impact experiential leadership program. After training at Merrill Lynch, he rose to the level of vice-president at both EF Hutton and Smith Barney. Managing Director, Credit in Sydney. Johannes Worsoe Previously, Gary was Deputy Chairman and on the board of directors of Lazard, LLC. Avianca offered to exchange the notes at par value with a higher coupon rate (9%) due May 2023 upon the closing of an investment of up to $250 million of new equity or convertible debt from United Airlines Inc. and Kingsland Holdings. Prior to joining Apollo in 2012, Daniel was a member of the Structured Credit team at Stone Tower Capital, and previously worked for Wachovia Capital Markets originating cash and synthetic asset-backed CDOs and other structured credit products. Chris Buchanan William Jones is a Managing Director, Credit at Apollo. We accomplish this by seeking out talented, committed people and bringing them together as one team. He graduated from the Indian Institute of Technology Madras (IIT Madras) with a B.Tech degree in Electrical Engineering (Electronics) and received his PGDM (MBA) from the Indian Institute of Management, Calcutta. The only exceptions to the correspondence between lower ratings and higher default rates occur when the number of defaults is low or when the underlying number of issuers is very small--such as at the rating modifier level among the higher rating categories (see table 26). Ms. Harford has been the UBS GEB lead for Sustainability and Impact since May 2021. Oncolytics Biotech Inc. (NASDAQ: ONCY) (TSX: ONC) today announced recent operational highlights and financial results for the third quarter ended September 30, 2022. Larry previously served on the board of directors of Rexnord Corporation, General Nutrition Center, Rent-A-Center, Laureate Education, Goodman Global, Connections Academy, Berlitz Corporation and ABC Supply. On Jan. 16, 2020, Payless ShoeSource emerged from Chapter 11. Managing Director, Credit in New York. Before that, he led North America Investor Relations and Fundraising at CVC Capital Partners and was Senior Executive at Monarch Alternative Capital. Adriaan graduated from Erasmus University in Rotterdam with a Masters degree in Economics and served as a lieutenant in the Dutch Navy. If youre putting a thumbs down to that youre too ignorant to be trading. Co-Anchor "Power Lunch" & Vice President, Events Strategy, CNBC. She has previously served on the board of directors of The Fresh Market and Presidio. From 19751976, he served as Chief Counsel to the U.S. Senate Judiciary Committees Subcommittee on Constitutional Amendments. With pervasive economic uncertainty, an outbreak of economic and military warfare, inflation setting records, central banks scrambling to adjust policies, and the long shadow of the pandemic obscuring vision, investors are navigating a market at a crossroads. Christopher Lahoud is Partner, Credit at Apollo. Matthew Manin is Managing Director, Capital Solutions at Apollo, where he oversees the US Private Equity Capital Markets team. 1983. On Aug. 1, 2019, we raised our issuer credit rating on the company to 'CCC+' from 'SD' as the company completed its exchange. A Rhodes Scholar and Sloan Fellow, Leslie graduated from London Business School, MA in Management; University of Oxford, BA (Hons) in Philosophy, Politics and Economics; London School of Economics, MSc Economic History; and University of Reading, BSc (Hons) Agricultural Economics. We make our best effort to capture such defaults in the database, and we include an entity in the annual default rate calculations if it was rated as of Jan. 1 in the year of default. Prior to joining the staff of Senator Reid, David was Senior Vice President of the Comcast Corporation. Before joining the firm in 2022, Brian was a member of the BlackRock Institutional Executive Committee and BlackRock's Global Client Council where he led BlackRock's Family Office, Foundation, Endowment & Healthcare channels. Amanda graduated from Duke University with a BS in Economics and received her JD from New York University School of Law. Earl Hunt is Partner, Credit at Apollo, where he serves as CEO of Apollo Debt Solutions and Co-Head of Credit Secondaries. Bogdan Ignaschenko Managing Director, Client and Product Solutions in New York. The largest gap between the two was in financial institutions, which had a four-notch difference: The 229 financial institutions that defaulted had a median original rating of 'BB-', compared with a sector median of 'BBB'. Partner & Global General Counsel, Legal, Compliance & Tax in New York. Previously, she was with JP Morgan, most recently as Global Head of FP&A for Fixed Income Exotics and Hybrids based in London. Partner, Real Estate in Hong Kong. In a small number of cases, we use the subordinated debt rating or the senior secured rating as the proxy. Stefanie Sundel Lauren received an M.B.A. from The Wharton School at University of Pennsylvania and a B.S. Earlier, on July 23, 2019, we had lowered our issuer credit rating on the company to 'CC' from 'CCC' on a likely inability to repay debt due in October. Kristen Hester The ranking of $138.5 million of the existing second-lien notes had also been effectively lowered in the payment waterfall. Vittorio graduated with a first-class BA (Hons) in international business from the European Business School, London. Earlier in her career, she worked as a Litigation Associate for Bernstein Litowitz Berger & Grossmann LLP and Labaton Sucharow LLP. Ria Nova is Partner, Client and Product Solutions, at Apollo where she is responsible for leading the Americas institutional sales business. Prior to joining HIERS, Ms. Burton served as Managing Director of the Quantitative Strategies Group at the Maryland State Retirement Agency. Partner, Finance in London. From 1999 to 2006, Fortt wrote and edited at the San Jose Mercury News, Silicon Valley's hometown newspaper. Christopher Welp is Executive Vice President of Insurance Operations at Athene, where he is responsible for all of Athene USAs insurance operations, including annuity new business, annuity post issue processing and claims, contact centers, agency services, inbound and outbound mail services and operational shared services. Luke Scolastico is Managing Director, Credit at Apollo. Government-backed Problem Loans Fund bought an additional KZT604 billion of loans from Tsesnabank at book value, therefore providing substantial liquidity support to the bank. In addition, Lee is a member of the ensemble cast of CNBCs Power Lunch (M-F, 2PM-3PM ET). Benjamin Eppley Investors should obtain investment advice before making any decisions and satisfy themselves that all information required by law to be given to them has been provided. Prior to that, he was Executive Director of corporate accounting policies with JPMorgan Chase & Co. Katherine Daly is Executive Vice President of Corporate Development at Athene. We calculated conditional default rates by dividing the number of issuers in a static pool that default at a specific time horizon by the number of issuers that survived (did not default) to that point in time. He is the co-author of numerous Harvard Business School case studies on leadership. Entities that have had ratings withdrawn--that is, revised to not rated (NR)--are surveilled with the aim of capturing a potential default. Before that, he was with the growth capital team at 3i Group Plc in India and was a founding member of the India office of Q Investments, a US based hedge fund. Therefore, we still believed there was a risk of another debt restructuring within the next 12 months without a significant improvement in the business. S&P Global Ratings viewed these changes as consistent with its definition under its criteria of a restricted default of rated banks in Lebanon. He is responsible for leading the companys distribution and sales efforts. On Aug. 22, 2019, S&P Global Ratings downgraded Cell C to 'D' from 'SD' after the company failed to make interest payments on certain bilateral loan facilities due July 2019. Stephanie graduated from Barnard College of Columbia University and earned her MBA from Columbia Business School. John graduated summa cum laude from Saint Joseph's University with a BS degree in Accounting. John Zito Prior to joining Thomson Reuters, Jaime held a variety of senior corporate services roles at Citigroup, Bear Stearns, Bank of America and Lehman Brothers. 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