Bond default rates see rise for first time in a year

Corporates in the US are seeing a slow credit recovery as bond default rates have increased for the first time in a year, says Moody’s, the ratings agency. August saw a rise in default rates to 6%, up from 5.8% in July.

Over 70 issuers, since January, have defaulted on $38 billion of debt. But despite the August increase, these figures compare favourably to corresponding figures for 2002, when 108 issuers defaulted on $120 billion in debt; a fall of almost 75%.