Credit markets

Unlikely convergence..




How often do US high grade corporate bonds trade at the same rate as emerging markets sovereign bonds?

Defaults on the rise..

Edward Altman: Currently, U.S. corporate defaults are running at just over 2% YTD whereas the high-yield markets are pricing in a default rate of around 11% one year from now. Loose covenants during credit boom and refinancings are delaying defaults

click for IMF report >