Is The Air Coming Out Of Housing And Auto Market?

The proportion of global nonfinancial companies with junk ratings has surged by 58% since 2009, to the highest proportion ever: Moody’s

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  • Since 2009, the level of global nonfinancial companies rated as speculative, or junk, has surged by 58 percent, to the highest proportion ever.
  • Moody’s warns that even though default rates are low now, future periods of stress will cause a “particularly large” wave of defaults.
  • Debt for U.S. companies has surged 49 percent since the crisis, with many higher-rated firms using it to buy back shares and issue dividends.

 

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