The US institutional leveraged loan default rate stands at just 0.50% year-to-date despite the slight pickup over the past six weeks, but it’s expected to increase as higher interest rates, inflation and weaker growth take their toll, Fitch Ratings said in a
- Fitch currently forecasts the default rate to end 2022 at 1.5%
- Default volume tallied $2.8 billion in April driven by Envision Healthcare’s distressed debt exchange, while Talen Energy Supply’s May 9 bankruptcy contributed $760 million
- There are a couple of issuers expected to default soon, potentially within the next month. Automotive company Service King already defaulted ...