Upturn in the default rate cycle, says Moody’s

The global speculative-grade default rate edged up to 2.5% in February from 2.3% in January, possibly signalling a turning point in the direction of the default rate, according to a report issued by Moody’s Investors Service.

“For several months now, Moody’s has been predicting that default rates would reach a cyclical low near the second quarter of this year,” said David Hamilton, Moody’s director of default research. “February’s rise may indicate that we are near the turning point.