Investors Brace for Defaults as Distressed Debt Swamps Market

Updated on
  • Market measures imply a default rate of as much as 4.8 percent
  • A distressed debt ratio hasn't been this high since 2011

Junk-bond investors are bracing for a surge in corporate defaults that would exceed the most pessimistic forecast from credit raters as the Federal Reserve contemplates its first interest-rate increase since 2006.

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