Posted 11/28/2023, 3:20:00 AM
Rising Interest Rates Lead to More Corporate Defaults and Bankruptcies
- Default rates and bankruptcy filings are rising as borrowing costs increase due to Fed interest rate hikes
- Economists say a "default cycle" has started, especially impacting middle market companies
- There have already been more corporate defaults in 2022 than all of last year
- Bankruptcy filings this year through September exceed 2021 and 2022 totals
- A significant amount of risky corporate debt is maturing in the next few years