Credit agencies may be one of the big winners of the post-pandemic build back, as they ride the waves of economic instability and decide which consumers and businesses are worthy of credit lines and extra lending. They wield very real power. Deloitte reported this month that companies needed to borrow to invest in home working and social distancing and, for some luckier businesses, needing to borrow more to expand as the pandemic provided them with fruitful opportunities. They still must pay this money down, of course.
The power of the credit agency has therefore grown to an all-time high, and The Edge thinks stocks in this field are worth watching. One credit agency which has caught The Edge’s attention is Dun & Bradstreet Holdings, Inc. (DNB), a company that offers information on commercial credit as well as reports on businesses and has the information on millions of companies. The stock has drifted, but now may be the time for investors to look at co-investing with the management.