Default Risks Mount for High-Risk Borrowers Amid Economic Uncertainty.
TL;DR Summary
Leveraged loan defaults have reached $24.5 billion, putting the sector on track for the third-worst year in history, according to Goldman Sachs. The rise in defaults is due to the Federal Reserve's interest rate hikes, which have hit borrowers with floating-rate debt particularly hard. Leveraged loans are high-risk financing for companies with substantial debt and poor credit histories, and have given rise to leveraged corporate buyouts. The sector has also produced collateralized loan obligations and exchange-traded funds.
- Leveraged loan defaults hit $25 billion, head for third worst year in history, says Goldman MarketWatch
- Junk-Bond Defaults Rise in May The Wall Street Journal
- Ballooning maturity wall a growing risk for speculative-grade companies S&P Global
- U.S. junk loan defaults surge as higher interest rates start to bite The Globe and Mail
- Stock Market Today: Dow, S&P 500 trade lower ahead of long holiday weekend MarketWatch
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