"Distressed Debt Surges as Defaults Escalate: BofA Predicts $46B Wave"

Bank of America has warned that the US could experience a $46 billion wave of distressed high-yield debt in 2024 as defaults accelerate. The bank predicts that defaults could increase at a pace 1.5 times faster next year due to higher interest rates. The technology, media, and telecom sectors are expected to see the most defaults, followed by the health and cable sectors. Experts have also warned of a wave of bankruptcies and defaults, with Fitch Ratings estimating a high-yield bond default rate of 4.5% to 5% by the end of this year and Charles Schwab predicting a peak in total US bankruptcies and debt defaults in early 2024.