Kraft Heinz, Macy’s, Renault Add to Fallen Angel Fear

The video discusses global macro risks, particularly the impact of the coronavirus on corporate earnings and economic growth. It explores factors leading to company downgrades, such as changing consumer preferences and debt issues. The focus is on the consumer discretionary sector, highlighting its vulnerabilities and potential risks. A scenario analysis is presented, considering both baseline and downside cases, with emphasis on the spread of weaknesses across various sectors.

What are some of the challenges faced by Kraft Heinz as mentioned in the video?

• Increased willingness to invest in brick and mortar stores

• Excessive debt reduction and stable earnings

• Strong global growth and high consumer demand

• Re-leveraging through acquisition and changing consumer preferences

Which sector is expected to contribute most to the fallen angel debt this year?

• Industrial

• Telecommunications

• Consumer discretionary

• Healthcare

What is the current level of U.S. debt to GDP as discussed in the video?

• 30%

• 47%

• 75%

• 60%

In the downside scenario, what is the assumed decline in the S&P 500?

• 10%

• 30%

• 15%

• 25%

Which traditionally less cyclical sectors are mentioned as being affected in the downside scenario?

• Industrial and energy

• Consumer discretionary and industrial

• Energy and telecommunications

• Healthcare and telecommunications