Corporate Debt Crisis Looms As Rising Rates Fuel Bankruptcy Fears

A wave of corporate bankruptcies and debt defaults is expected as high interest rates batter companies.

Defaults on corporate debt globally hit the highest level since 2009 in August, per S&P Global.

Borrowing costs for firms have doubled or tripled in 2022 compared to prior years.

Total US bankruptcies and defaults could peak by end of Q1 2024, per Charles Schwab estimates.

More corporate struggles may slash jobs and weigh on asset prices, adding to recession risks.