On expectations of corporate bond defaults.

• Author: Rees, Matthew
• Position: On the financial services industry

"In percentage terms, the projections from the three main credit-rating agencies for defaults on high-yield bonds approach levels last seen in 1933, according to an 87-year default-rate history compiled by Moody's Investors Service. The agencies expect default rates on these non-investment-grade bonds to triple to about 14 percent or higher this year, from around 4.5 percent last year."

"This year, as of February 6, twenty-one U.S. companies have defaulted on $43.1 billion of high-yield bond and bank debt, according to S&R...