Alternatives
Direct Lending Default Rate Expected to Rise to 3% in 2025
KBRA anticipates an increase spurred by consumer sector defaults.
Tag: defaults
Risk
Private Credit Downgrades Rise Among Mid-Sized Companies, Says KBRA
Among a sampling of them, 21% had first quarter demotions, striking a possibly worrisome note for a key part of the economy.
Why Private Credit Is So Darn Popular
Yields are high, and well-fixed institutions back them, but what happens in a recession?
Risk
Weak Companies’ Low-Yielding Bonds Set to Hit Maturity Wall
Risk grows as a raft of junk-rated issuers, paying modest interest, must refinance their debt at much higher rates.
Risk
Junk Bond Defaults Are Rising, Despite Healthy-Seeming Economy, S&P Says
Distress in the high-yield market often is a sign of pending trouble. But economists are backing off of their recession forecasts.
What Could Derail Private Credit’s Momentum?
The popular investment may suffer from an economic dip and other changes in the financial scene, critics warn.
News
How to Thrive Amid the 2023 Junk Bond Slump
What to invest in, both before and during the recession, per high-yield expert Martin Fridson.
How CLOs, Despite Seeming Risky, Got to Be So Popular
In a triumph for structured finance, these packages of junk loans have up to now confounded any perils.
Market Moves
Not So Junky: Speculative Bond Yields Near 4%
After dire predictions of disaster for high-yield paper, defaults never hit the painful levels forecast last spring.
Market Moves
Watch Out for a Doubling of Junk Defaults, Warns Gundlach
The Bond King fears their fundamentals are too rickety to persevere during this recession.
Market Moves
Ackman Bets Against Junk Bonds, Now Resurgent
Hedge fund honcho thinks dragged-out economic recovery will harm high-debt companies.
Despite Fed Backstop, Junk Bonds Still Face Big Trouble
The central bank’s much-touted help for high-yield is skimpy, in light of what nastiness lies ahead.
Companies’ Towering Debt Might Not Bring Widespread Defaults
Junk bonds do better when interest rates are low, like now, Nataxis finds.
Market Moves
Beware of Corporate Debt, Even Non-Junk, Says David Einhorn
Prophetic on Lehman in ’08, hedge fund operator claims rating agencies go too easy on debt-laden companies.