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.

Minister of Small Business, Entrepreneurship and Commerce, Dwight Sutherland believes Barbados must have strong insolvency legislation and sound insolvency procedures as it seeks become globally competitive, Loop reported. Addressing a meeting on the country’s Bankruptcy and Insolvency Act, hosted in conjunction with IMPACT Justice and the Government of Canada, he noted that the Mia Mottley-led Government was committed to implementing relevant reforms to improve business on the island.

Businessman Denis O’Brien’s Digicel may seek to refinance at a discounted price some $1.3 billion (€1.2 billion) of bond debt due to be repaid in early 2021, to take advantage of the fact that they are trading at a discount in the market, according to US debt research firm Xtract Research. However, such a move would be considered by debt ratings agencies as a more aggressive distressed debt manoeuvre than the one completed by Digicel earlier this year, The Irish Times reported.

Mexico’s central bank opted to cut its key lending rate by a quarter-point to 7.75 per cent, rather than the half point move that some analysts said it had room for, after the economy contracted in July by more than had been expected, the Financial Times reported. Thursday’s decision was not unanimous however, as two of the five board members pushed for a half-point cut. Banxico’s second cut in a row is a bid to revive the moribund economy as inflation has tamed and the peso is stable against the dollar.

Tuesday was a day to forget for Prem Watsa, often referred to as Canada’s Warren Buffett. His Fairfax Financial Holdings Ltd. lost more than C$160 million ($121 million) just in his top five listed Canadian investments, according to the latest filings compiled by Bloomberg. BlackBerry’s abysmal fiscal second-quarter earnings, which saw one of its staunchest bulls join the bear camp, was the prime offender, Bloomberg News reported. The stock fell 23% on Tuesday and extended declines Wednesday to the lowest in six years. To add to the pressure, Fairfax owns BlackBerry convertible debentures.

CO2 Solutions Inc. ("CO2 Solutions" or the "'Corporation") announced today that it has filed a notice of intention to make a proposal (the "Notice") pursuant to the provisions of Part III of the Bankruptcy and Insolvency Act (Canada), Yahoo! Finance reported. Pursuant to the Notice, Ernst and Young Inc. ("E&Y") has been appointed as trustee and will assist CO2 Solutions in its restructuring efforts.

Avaya Holdings Corp. is considering a bid from rival Mitel Networks that could create a telecommunications equipment vendor worth more than $5 billion including debt, people with knowledge of the matter said, Bloomberg News reported. The shares surged. Closely held Mitel submitted an offer for Avaya that it believes would value the combined business at more than $20 per share, according to the people. The companies have held on-and-off discussions about a potential deal since April, the people said, asking not to be identified because the matter is private.

The Canada Pension Plan Investment Board, one of the world’s largest retirement funds, plans to start a credit arm in India, seizing on a moment when the country’s troubled financial system is starved of capital, the Financial Times reported. CPPIB is putting together a credit strategy for India, international investment head Alain Carrier told the Financial Times, which could see the C$392bn ($297bn) fund build on its Indian real estate and infrastructure investments by partnering with non-bank providers to offer debt or enter the market directly.  “This is something

Costa Rica’s legislative assembly on Monday approved the placement of up to $1.5 billion in bonds in coming months as the Central American country struggles to reduce its mounting debt burden, Reuters reported. Over the past 10 years, public debt in Costa Rica has doubled and now stands at about 53 percent of gross domestic product. The first tranche of the dollar bond debt issue will be placed in international markets from August, said Rocio Aguilar, Costa Rica’s finance minister. The government will have a year to complete the bond issue.

Canadian aerospace company Bombardier has announced the sale of its regional jet program to Japan's Mitsubishi Heavy Industries Ltd. for $550 million, the International New York Times reported on an Associated Press story. The company is seeking to exit the commercial plane market and focus on business jets and its large rail segment. Bombardier chief executive Alain Bellemare said Tuesday the sale signifies the completion of the transformation of its aerospace business.