Companies Repeated Defaults at Record Level in 2024, JPM Says

Risky companies defaulted more than once at a record rate in 2024, according to a new report from JPMorgan Chase & Co.

Around 35% of the year’s defaults and distressed exchanges were repeat offenders in a historical record, the report from strategists led by Nelson Jantzen said. That’s while the leveraged loan default rate is at a roughly four-year high.

Interest rates remaining higher for a big part of last year weakened balance sheets of lower-rated companies. That impact has been especially pronounced in the leveraged loan market as those issuers borrow on a floating-rate basis, with interest costs nearly ...