In this edition of According to Market Intelligence, we look at the direction of the stock market, the increase in demand for credit risk protection, and the strength of the banking sector.

Starting with Wall Street and the S&P 500

• According to Market Intelligence data, institutional investors sold off over $379 in stocks as they fled the stock market.
• These investors are keeping a close eye on credit risk as their appetite for risk drops.

Demand for credit default swaps and related instruments escalated in 2022

• Credit default swaps are expected to stay in 2023 as rising interest rates, higher costs of financing, and tighter lending conditions pose risks for corporate and emerging market credit.

Banks are in strong financial shape

Despite our Purchasing Managers' Index indicating a continual fall in business activity, business confidence is returning through improved shipping and improved supply chain conditions.

• According to our forecasting data, 16 of the 17 largest public banks in the U.S. are expected to raise dividends next year.