Global Credit Managers See More Defaults Ahead
- Trade woes, slowdown concerns weigh on sentiment, IACPM says
- About 60% of investors see junk spreads widening in next year
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More than two-thirds of global corporate bond fund managers expect default rates to climb over the next 12 months, according to a new report from the International Association of Credit Portfolio Managers.
In a September survey of over 100 member institutions in more than 20 countries, 68% of respondents said they expect defaults to rise, up from 58% three months ago. In the survey, 74% said North American default rates will climb, while 75% expect European default rates to increase, up from 52% in June.