16 Apr 2024 | Financial Services | blogs

Guard Your Investments- Corporate Defaults Alarm

Investor apprehensions intensify against a backdrop of mounting corporate defaults propelled by soaring interest rates. With defaults anticipated to crest by mid-2024, corporations grapple with challenges emanating from sluggish demand and surging wages. While a semblance of recovery is on the horizon for late 2024, prudence is paramount as leveraged corporate defaults surge to unprecedented levels, particularly in the US. Investor anxieties are most acute in high-debt sectors, underscored by findings from the IACPM Credit Outlook Survey, which validate the uptick in defaults and advocate for regulatory scrutiny in portfolio hedge evaluations. Jasper Colin presents bespoke remedies, including real-time debt market surveillance and AI-powered risk evaluation, to empower banks in navigating the tumult of defaults amidst the relentless ascent of interest rates.