The share of leverage loan defaults jumped to 7.2% in October, the highest since the 2020 pandemic.
The percentage has DOUBLED over the last 2 years. In the US, junk loan default rates have skyrocketed to their highest in 10 years, according to Moody’s.
This comes as companies took on large amounts of debt during the ultra-low rate period in 2020, and have struggled to pay it off with higher rates.
As higher for longer is back we expect even more upward pressure on default rates.
