The default rate for US speculative-grade debt has been rising and notched 4.2% in July.
And that pace is likely to accelerate due to a higher interest rates, strategists said.
But that's still below 2020's peak, which saw the default rate top 8%, according to Moody's data cited by Societe Generale.
Markets have grown more concerned over corporate debt pressures as the Fed aggressively raised the cost of borrowing over the past year and a half to tame high inflation.
Meanwhile, corporate debt defaults in 2023 have already surpassed last year's total, Moody's data shows.
Persons:
that's
Organizations:
Societe Generale, Service
Locations:
Wall, Silicon