US bond defaults in October lead to rise in global default figures

The four corporate bond defaults during October were all US-based and amounted to $2.3 billion, the largest being the $1.3 billion default by Trump Atlantic City Associates. It is also the largest default this year and trumps the $1.25 billion default from the RCN Corporation. As a result, the global speculative-grade default rate for corporates has risen to 2.4% in November, its first rise since October 2003, according to Moody's. But not to worry, says the rating agency, which predicts it will fall back again to 2.3% by the end of the year before rising again in 2005.