UBS Says Junk Bond Bubble Just a Slowdown Away From Popping

Updated on
  • Default rates could reach record levels, strategists write
  • `Clients were not being compensated for the credit risk'

Investors that lend to U.S. junk-rated companies aren’t being compensated for the looming credit shakeout that could push defaults to record highs, according to UBS Group AG credit strategists Matthew Mish and Stephen Caprio.

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