The pace of speculative grade defaults will likely accelerate, Societe Generale strategists said.Getty Images / Spencer Platt The default rate for US speculative-grade debt has been rising and notched 4.2% in July. That's the highest rate since 2021, according to Societe Generale. And that pace is likely to accelerate due to a higher interest rates, strategists said. Defaults on risky, high-yield corporate debt are now rising at the fastest pace since the pandemic, according to Societe Generale, another sign that America's debt troubles could be approaching a turning point.The default rate for US speculative-grade debt has been climbing and notched 4.2% in July, the research firm said in a note on Wednesday, matching rates seen in 2021.But that's still below 2020's peak, which saw the default rate top 8%, according to Moody's data cited by Societe Generale.The pace of defaults is likely to accelerate as markets navigate a higher-interest-rate environment, strategists said.
Comment on Defaults of risky high-yield corporate debt are rising at the fastest pace since the pandemic
jsor@insider.com (Jennifer Sor), Business Insider
Wed, 08/30/2023 - 10:08am
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