Junk default rate hits record, agencies say worst is over

Global speculative grade default rates hit 12.4% in October — the highest level seen since the 1930s depression, Moody’s said on Thursday. However, the rating agency believes that the cycle is near its peak and expects the defaults to rise to 12.5% next month and then to drop to 4.2% by October 2010.

  • 06 Nov 2009

The previous highest post-depression default rate recorded by Moody’s was 12.2% in July 1991.

Europe is likely to be hit less hard than the US, with Moody’s predicting that European junk default rates will hit 10.2% by year end, dropping back to 4.3% by next October. It expects the ...

Please take a trial or subscribe to access this content.

Contact our subscriptions team to discuss your access: subs@globalcapital.com

Corporate access

To discuss GlobalCapital access for your entire department or company please contact our subscriptions sales team at: subs@globalcapital.com or find out more online here.

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Citi 3,691 11 20.70
2 Morgan Stanley 2,420 6 13.57
3 Goldman Sachs 2,096 5 11.75
4 BNP Paribas 1,686 6 9.45
5 Barclays 1,565 4 8.78

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 40,734.72 129 10.87%
2 JPMorgan 33,785.84 96 9.02%
3 Wells Fargo Securities 31,464.27 90 8.40%
4 Bank of America Merrill Lynch 29,270.38 93 7.81%
5 Credit Suisse 23,189.41 72 6.19%