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Junk Bond Defaults Soar; Citigroup Uneasy

Posted on June 10, 2008

Bloomberg is reporting Junk Bond Defaults Rise for Sixth Straight Month.Companies with high-yield, high-risk debt defaulted at an annual rate of 2 percent in May compared with 1.7 percent in April, the sixth consecutive month of increases, according to Moody's Investors Service.The global default rate may rise sharply to 5 percent by the end of 2008 and 6.3 percent a year from now, according to a report written by Kenneth Emery, Moody's director of corporate default research in New York. Many speculative-grade issuers will face mounting financial pressures over the remainder of the year as a...

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bonds , default rate , economy , euro , junk bond