Number Of US High-Yield Defaults At Post-Crisis High

Number Of US High-Yield Defaults At Post-Crisis High 

Concerns about the health of the global economy and the fragile state of the corporate sector, continue to overshadow the investment landscape.

Last week credit rating agency Moody’s published its April 2016 realised default rates and 12-month ahead forecasts, which showed that US defaults have surprised on the upside recently highlighting the weakened state of the US corporate sector’s balance sheet.

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The default rate was 2.51% in Europe, 4.43% in the US and 3.98% globally. The baseline forecast for the next 12 months is 2.8% for Europe, 5.8% for the US and 4.6% globally.

According to Deutsche Bank’s May 10 credit research report, which focuses...