A cold shower for corporate America?
While equity markets have appeared to enjoy a recovery, corporate defaults provided a cold dose of reality. Tabula CIO Jason Smith looks at the outlook for North American corporate credit and how investors can manage their risk.
– YTD defaults in North American corporate credit are the highest since 2009
– Ratings downgrades have accelerated sharply
– Default rates may not peak until 2021
– In a rapidly evolving situation, the ability to reduce exposure quickly and efficiently is critical