The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Global default rates on the decline

The global speculative-grade corporate bond default rate has fallen for the fifteenth month in succession since the peak in January 2002, according to a Moody's report released today. Default rates fell to 6.1% in June, falling from 6.5% in May. The peak, in January 2002, stood at 10.9%.

 

The positive results have been recorded across a number of regions. The default rate for US domiciled issuers fell to 5.8% in June from 6.2% in May, while the European speculative-grade default rate fell to 10.9% from 12.8% in May.

 

David Hamilton, director of default research at Moody's, comments: "Even though aggregate credit conditions have improved since last year, the data still suggest an above average global default rate over the next year." And he suggests caution for the future: "Our forecasting model predicts that the default rate by number of issued will be unchanged for a year from now from the current 6.1%."

 

The second quarter of 2003 saw 20 Moody's rated issuers default on $8 billion of debt. The corresponding 2002 figures saw 40 issuers defaulting on $40 billion.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree