Corporate Default Spike Predicted

Corporate Default Spike Predicted

Corporate & Sovereign Strategy

Moody's predicts that the global speculative-grade issuer-weighted corporate default rate will climb to 4.3% by the end of this year, leaping to 10.4% a year from now. "Speculative-grade corporate default rates are expected to climb sharply throughout 2009 as our baseline forecast now incorporates a deep and protracted US recession. Corporate default rates in this cycle will likely match or exceed the peak levels reached in the previous two US recessions of 1990-91 and 2000-01," says Moody's dir

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