Credit Trends: Distressed Debt Monitor: The U.S. Distress Ratio Increased To 16.6% In December--Its Second-Highest Level For The Year Dec 11
- ID: 2032840
- December 2011
- Region: United States
- Standard & Poors
Uncertainty surrounding the European debt crisis continues to depress financial markets around the world. Investors in the region remain risk averse as spreads have widened and the likelihood of a recession in early 2012 has increased. In addition, in the U.S., high unemployment, low consumer confidence, and concerns about the federal budget persist. Amid these conditions, the distress ratio increased to 16.6% on Dec. 9 after declining modestly to 15.7% in November. The distress ratio increased from May through October, reaching its highest point since October 2009 at 19.3% on Oct. 14. Standard & Poor's distress ratio is the number of distressed securities divided by the total number of speculative-grade-rated issues. Distressed credits are speculative-grade-rated issues that have option-adjusted spreads...
Companies mentioned in this report are:
- Sprint Nextel Corp.
- Clearwire Communications LLC
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Research Type: Commentary
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