US Public Companies’ Risk of Default Hits 9.2%, Moody’s Says

The average risk of default for US public companies hit 9.2% at the end of 2024, the highest since the global financial crisis, according to a Moody’s Asset Management report released on Tuesday.

• A prolonged period of elevated interest rates has raised US companies’ default risk; that metric is expected to remain elevated throughout 2025
• Companies that issue high-yield debt have a lower default expectancy at 3.3%, the report said
  • The median high-yield issuer is 12 times larger than the median US public company and has greater access to capital
• Borrowers in the loan market are also more at risk ...