Credit Trends: Distressed Debt Monitor: The U.S. Distress Ratio Increases To 11.4% In November Nov 12
- Language: English
- Published: November 2012
- Region: United States
After tumultuous events in the Middle East and Japan earlier in the year, markets appear to be on a stronger footing, despite an increase in defaults during April. At the end of April, the speculative-grade corporate default rate in the U.S. was 2.55%, little changed from 2.47% at the end of March. Also, the U.S. speculative-grade corporate bond spread increased only slightly, to 489 basis points (bps) on May 16 from 475 bps a month earlier. With the increase in the corporate bond spread, the distress ratio also rose, to 3.65% on May 16 from 3.56% a month earlier (see chart 1). Standard & Poor's distress ratio is defined as the number of distressed securities divided by the total number...
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