{ "docId": "019dd923-5e88-73ef-bd5b-35318e29dc88", "docSlug": "39791f0d14c5e9fb", "documentTitle": "JPM Corp Fin Advisory Corporate Compass Jan 2024", "authorId": "JPMorgan", "authorName": "J.P. Morgan", "documentKindSlug": "consulting-deck", "documentKindLabel": "Consulting deck", "sourceTypeSlug": "equity_research", "sourceTypeLabel": "Equity research", "presentationDate": null, "orientation": "landscape", "aspectRatio": 1.294, "pageNumber": 9, "pageCount": 15, "prevPage": 8, "nextPage": 10, "slideType": "industry_trends", "function": "analyze_data", "density": "overcrowded", "nDataPoints": 15, "notes": "Includes J.P. Morgan branding and detailed source footnotes.", "elementsJson": [ "headline_text", "bar_chart_vertical", "bar_chart_horizontal", "line_chart", "callout_box", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-5e88-73ef-bd5b-35318e29dc88/9", "deckHref": "/decks/019dd923-5e88-73ef-bd5b-35318e29dc88", "deckJsonHref": "/decks/019dd923-5e88-73ef-bd5b-35318e29dc88.json", "deckAnchorHref": "/decks/019dd923-5e88-73ef-bd5b-35318e29dc88#slide-9", "components": [ { "bbox": { "h": 0.05, "w": 0.9, "x": 0.05, "y": 0.68 }, "kind": "callout", "text": "Typical large-caps maintain >1x more leverage today vs. during the last higher-rate environment", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "89400d31-4982-4a98-9747-e2caa3ba941d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.45, "x": 0.52, "y": 0.17 }, "kind": "chart", "text": "WEIGHTED AVERAGE YEARS UNTIL MATURITY – S&P 1500", "attrs": null, "subkind": "bar-vertical", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2f4bcc1c-1d68-40a1-bdc0-06a17b696581", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.45, "w": 0.45, "x": 0.05, "y": 0.17 }, "kind": "chart", "text": "S&P 500 (EX-FIN) GROSS LEVERAGE", "attrs": null, "subkind": "bar-vertical", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "7b0caa17-173c-4858-b42c-cac782c9c031", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.3, "w": 0.45, "x": 0.52, "y": 0.35 }, "kind": "chart", "text": "EFFECTIVE NET INTEREST RATE OVER TIME – S&P 1500", "attrs": null, "subkind": "line", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "136e314a-3482-4fb2-8c93-e413406dc9d9", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.8, "x": 0.15, "y": 0.75 }, "kind": "list", "text": "Smaller companies typically have lower ratings, shorter maturities and more organic floating rate exposure, so have seen an immediate impact in cash interest paid. COVID-era issuances will come to term in the near-future, creating a need to refinance in a potentially much higher rate environment driving many to build cash in anticipation of paying off debt at maturity", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2b2d97d0-ae59-4e7e-adf3-8ef626283af1", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "Gross Leverage: 2.7x", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd952-28a8-72e5-a81a-1febe5285e86", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.9, "x": 0.05, "y": 0.88 }, "kind": "source-note", "text": "Source: FactSet, Market date as of Q3 2023; 1 Average leverage during each period; 2 As of Q3 2023, based on change in median S&P 500 cash / assets from Q1 2023 – Q3 2023; 3 Represents weighted average maturity of bonds, loans and municipals; Largest and smallest companies defined as top and bottom decile of the S&P 1500 by market cap; 4 Reflects index constituents as of 12/31 for each respective year; excludes Financials; calculated as quarterly interest expense net of quarterly income earned from interest annualized, divided by net debt, excludes companies with no debt or a negative net debt balance; largest firms represents top decile of companies by market cap and smallest firms represent bottom decile of companies by market cap each year", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0c8f40a1-4e4d-4048-9a7c-df7c30a434e0", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.9, "x": 0.05, "y": 0.08 }, "kind": "title", "text": "Companies are more levered coming out of the low-rate environment, with smaller companies most impacted", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "890414fc-b0e6-4051-87f4-9fd743694897", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 10, "from": 6, "beatId": "9c9b67d9-731a-46b1-9a72-2889ca85469f", "arcName": "Monroe's Motivated Sequence", "arcSlug": "monroes-sequence", "beatName": "Visualization", "beatSlug": "monroes-sequence-visualization", "evidence": "The financial analysis and industry trends slides provide a detailed visualization of the market.", "position": 2, "confidence": 0.8, "parentBeatName": "Evidence", "parentBeatSlug": "evidence" } ], "loops": [ { "to": 9, "from": 8, "name": "Cost Of Inaction", "slug": "27-cost-of-inaction", "bestFor": "Urgent budget requests, compliance, risk mitigation", "matchId": "fde2977c-e19d-462a-b853-dbf8d4230025", "evidence": "The energy transition valuations and typical large-caps maintain >1x more leverage today vs. during the last higher-rate environment slides.", "position": 0, "objective": "Highlight the challenge of capital-intensive investment in a higher rate environment.", "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point", "confidence": 0.7, "description": "Quantify what happens if the audience does nothing" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }