The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Winners and losers in the credit crunch

As the probability of a US recession rises, the best- and worst-performing credits of 2007 reveal the state of play in global economies. Jethro Wookey reports.

The best and worst performing financial credits of 2007

The best and worst performing non-financial credits of 2007


THE POSSIBILITY OF a recession in the US is becoming less a question of "if" than of "for how long?". The safeguard against a US recession, the awesome power of the US consumer, has been diminished. Consumers account for more than two-thirds of US economic activity, and after the worst Christmas for retail sales in five years there is now a genuine fear that a heavy recession is about to, or indeed already has, enveloped the world’s biggest economy. And despite assurances from many emerging markets investors that Asia has successfully decoupled from the developed markets, the recent decline in Asia’s stock markets belies this assertion. There is evidence that global economies are following the US into a downturn and, depending on its severity in the US, a recession could cause serious pain for companies around the world. "A heavy recession will spill over into other markets," says Joseph Biernat, head of research at European Capital Management. "Anything else, and we don’t expect a backlash, except maybe in the UK, where excess leverage is a particular problem."


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree