Global Credit Managers See More Defaults Ahead

More than two-thirds of global corporate bond fund managers expect default rates to climb over the next 12 months, according to a new report from the International Association of Credit Portfolio Managers, Bloomberg News reported. In a September survey of over 100 member institutions in more than 20 countries, 68% of respondents said they expect defaults to rise, up from 58% three months ago. In the survey, 74% said North American default rates will climb, while 75% expect European default rates to increase, up from 52% in June. About 60% of respondents expect North American high-yield spreads to widen over the next three months, up from 56%. Read more