Default Risk for US Listed Companies Cools in 2Q, Moody’s Says

Default risks for public companies in the US dropped in the second quarter as they adjusted to concerns and uncertainty around tariffs, according to a report from Moody’s asset management research team.

• The one-year average probability of default of US listed companies dropped to 8.8% in the quarter, from a spike of 9.8% in April, Moody’s wrote in a Thursday report
• “Markets seem to have become inured to shocks it regards as transient,” according to the report
• However, Moody’s data showed the number of high-yield companies flagged as high or severe risk as of July has almost doubled from the ...