Connect with us

Hi, what are you looking for?


The world’s largest bank issued a dire warning: This has not happened since the height of the coronavirus crisis

The world’s largest bank issued a dire warning: This has not happened since the height of the coronavirus crisis

The amount of corporate bonds in circulation rose at problematic levels in October, marking the first increase in seven months, according to JPMorgan research.

The impact of rising interest rates contributed significantly to the rise. High-yield bond holdings rose $40 billion in October to $674 billion, according to JPMorgan data.

The report’s authors indicated that due to the impact of rising interest rates on exchange rates, the volume of subscriptions has jumped to problematic levels exceeding the March 2020 level.

Several issuers contributed to the unfavorable October figure, including pharmaceutical company Bausch Health, telecommunications company Altice and enterprise technology provider Lumen Technologies.

A rise in corporate bond yields indicates that the issuer is unable to make payments. This usually results in a poor credit rating due to the risk of default.

Looking ahead, credit rating agencies such as Moody’s and Fitch expect an increase in default rates until 2024. These expectations come as a result of the impact of the US Federal Reserve’s interest rate hike cycle on corporate balance sheets.

Cover image credit: Spencer Platt/Getty Images

See also  Hamilton launches a surprise product
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Top News

In a harrowing incident that has shaken the community of Lewiston, Maine, a series of shootings on Wednesday evening resulted in a tragic loss...

Top News

President Joe Biden’s abrupt departure from a speech on the U.S. economy at the White House on Monday sent a ripple of speculation and...


Chinese scientists have discovered a little-known type of ore containing a rare earth metal highly sought after for its superconducting properties. The ore, called...


A dangerous application appeared in the Apple App Store disguised as a known program. reported the Based on TechCrunch article. Dangerous app in...

Copyright © 2024 Campus Lately.