US Junk Debt Defaults Hit 15-Month High in May, Says JPM

Defaults in the US sub-investment grade space rose to a 15-month high in May, with seven payment defaults totaling $4.5 billion across bonds and loans during the month, according to a JPMorgan report published on Monday.

• Of the payment defaults in May, bonds accounted for $1.7 billion while loans represented $2.9 billion
• Through the first five months of the year, 17 companies had a payment default, totaling $3.7 billion in bonds and $9 billion in loans
• Liability management exercises accounted for 42% of this year’s total default and distressed exchange volume, down from a record 68% last year
• JPM forecasts ...