Trump’s Tweets: Presidential Drivers of Credit Risk

President Donald Trump has, on several occasions, taken to Twitter to both criticize and praise specific companies that either align or go against his policy positions, primarily around government spending and the outsourcing of jobs to other nations like Mexico. Trump’s willingness to directly call out firms over Twitter has introduced a never before seen dynamic to the markets, and, correspondingly, the market implied credit risk for individual companies has been affected.

In this month's video and blog, Jim Elder, Director, Risk Services, uses our Probability of Default Market Signals model to analyze the short-term impact on the credit quality of individual firms that have entered Trump's cross-hairs, for better or worse.

To read the full blog, please go to http://www.spcapitaliq.com/blog/risk-insight-trump-s-tweets-presidential-drivers-of-credit-risk.