Credit portfolio managers estimate U.S. corporate defaults to rise, according to a recent survey, with the vast majority of respondents expecting the country to slip into recession this year.
In the Credit Outlook survey conducted by the International Association of Credit Portfolio Managers (IACPM), 86 percent of respondents stated that defaults will rise over the next 12 months, while only 14 percent expect the numbers to remain unchanged, stated a press release on April 13.
“Our members have expected to see the impact of rising interest rates for some time, and we’re beginning to see more credit stress and defaults in corporate borrowers now,” said Som-lok Leung, executive director of the IACPM. “Unfortunately, this could take some time to work its way through the system.”…