Is this the canary in the coalmine for corporate credit?
Throughout 2021, banks took back as profit the provisions they made in the first year of the pandemic against bad debts. Government largesse and central bank repression of rates saved the day.
“Default rates are near zero,” Doug Petno, chief executive of commercial banking at JPMorgan, told Euromoney after a whirlwind tour of mid-market European corporate clients in November.
That is almost a cautious assessment. Not a single issuer of European investment grade or junk-rated corporate bonds has gone bankrupt in 2021, according to S&P Global Ratings.
If the index continues to climb, funding options for many companies will shrink
Neil Devaney, Weil
Thanks for your interest in Euromoney!
To unlock this article, enter your e-mail to log in or enquire about access:
