Global Corporate Defaults Reach Highest August Level Since 2009 as Rate Hikes Take Toll

The number of new corporate defaults globally reached 16 in August, the highest for that month since 2009 according to S&P.
The August 2022 default tally is well above the 8.6 average seen in previous years for that month.
S&P expects default rates to keep rising as aggressive rate hikes increase companies' cost of funding and debt maturities approach.
By region, media/entertainment defaults accounted for 1/3 of US defaults in August, while consumer products hit Europe the most.
Latin America had 13 of the 14 emerging market defaults so far in 2022, showing increasing stress there.

reuters.com

Relevant topic timeline:

8/21/2023

Visualized: U.S. Corporate Bankruptcies On the Rise

The number of corporate bankruptcies in the US is increasing at the fastest pace since 2010, with over 400 corporations going under so far in 2023, reflecting overstretched balance sheets and rising interest rates.

9/4/2023

Debt Crisis Threatens to Engulf China’s Surviving Developers

China's housing crisis has led to a record number of defaults among the country's private developers, with 34 out of the top 50 developers experiencing delinquencies on offshore debt, and the remaining 16 facing a combined $1.48 billion of bond payments in September, raising concerns about a potential bond default by industry giant Country Garden and the potential ripple effects on the broader economy and social stability.

9/15/2023

US Corporate Debt Defaults Surge 176% in 2023 as High Interest Rates Push More Businesses into Distress

US companies have experienced a 176% increase in debt defaults in the first eight months of 2023 compared to the same period in 2022, with high interest rates pushing businesses into financial distress, particularly in the media and entertainment sector.

10/8/2023

Corporate Debt Crisis Looms As Rising Rates Fuel Bankruptcy Fears

A wave of corporate bankruptcies and debt defaults, driven by high interest rates, could potentially push the US economy into a recession, as global corporate defaults reach their highest levels since 2009 and borrowing costs for firms significantly rise.

10/8/2023

Rising US Rates Pummel Emerging Markets; Defaults Loom as Debt Loads Become Unmanageable

The rapid increase in Treasury yields has heightened concerns about potential defaults in emerging markets, with several countries at risk of missing payments or being forced to restructure their heavy debt loads.

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Posted 9/13/2023, 11:33:00 AM

Global Corporate Defaults Reach Highest August Level Since 2009 as Rate Hikes Take Toll

The number of new corporate defaults globally reached 16 in August, the highest for that month since 2009 according to S&P.
The August 2022 default tally is well above the 8.6 average seen in previous years for that month.
S&P expects default rates to keep rising as aggressive rate hikes increase companies' cost of funding and debt maturities approach.
By region, media/entertainment defaults accounted for 1/3 of US defaults in August, while consumer products hit Europe the most.
Latin America had 13 of the 14 emerging market defaults so far in 2022, showing increasing stress there.

reuters.com

Relevant topic timeline:

8/21/2023

Visualized: U.S. Corporate Bankruptcies On the Rise

9/4/2023

Debt Crisis Threatens to Engulf China’s Surviving Developers

9/15/2023

US Corporate Debt Defaults Surge 176% in 2023 as High Interest Rates Push More Businesses into Distress

10/8/2023

Corporate Debt Crisis Looms As Rising Rates Fuel Bankruptcy Fears

10/8/2023

Rising US Rates Pummel Emerging Markets; Defaults Loom as Debt Loads Become Unmanageable