🧵 1. Corporate debt defaults in the US surpass last year's total, warns Moody's. Higher borrowing rates and tight lending standards to blame. #finance
🧵 1. Corporate debt defaults in the US surpass last year's total, warns Moody's. Higher borrowing rates and tight lending standards to blame. #finance
🧵 2. 55 American companies defaulted on loans in H1 2023, a 53% increase from last year. May saw 16 corporate debt defaults globally.
🧵 3. Economic uncertainty and higher interest rates make it difficult for companies to refinance loans. Fed's monetary tightening policies contribute to defaults.
🧵 4. Fed expected to raise rates again in July to curb inflation, further increasing risk of recession. Financial conditions tighten across industries.
🧵 5. Bank of America warns that a credit crunch combined with a recession could lead to nearly $1 trillion in corporate debt defaults. Loan defaults may reach 11.3%.
🧵 Read more at: https://www.zerohedge.com/markets/us-corporate-debt-defaults-2023-surpass-last-years-total-moodys