US Loan Defaults Hit Record High
Reports indicate that the U.S. high-debt lending market has reached record levels of defaulting, with the value of distressed loans trading below 60 cents on the dollar totaling $65 billion—its highest since March 2020. This represents an increase of nearly $25 billion over the past year. Technology companies account for 39% of all distressed loans, facing challenges in refinancing amid a slowdown in the high-yield debt market, where "CCC" bond yields have risen to 15.58%, the highest since November 2022. It is expected that default rates will continue to rise next year, reaching 2.75% for bonds and 4.50% for loans.
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