Credit Managers Expect Defaults to Rise After Lagging Rate Hikes

Credit portfolio managers expect rising corporate defaults globally over the next 12 months, lagging factors such as rate increases, according to the International Association of Credit Portfolio Managers.

• In a December survey, 80% of respondents said they expect the credit default rate to rise in the next 12 months
  • That number is 88% for North American corporates and 91% for European
• “As we’re seeing, it’s taking time for defaults to rise,” IACPM Executive Director Som-lok Leung said in a statement. “Corporations, particularly in the United States, were flush with liquidity. Many of them borrowed money when interest rates were low ...