Latest IACPM Outlook Survey Shows Reduced Expectations for Rising Defaults After the Federal Reserve Cut Rates But Also Reveals Continuing Concerns, Especially For Heavily Indebted Borrowers
New York, NY –Despite the US Federal Reserve’s decision last month to ease the Fed Funds rate, 42% of respondents to the latest IACPM Credit Outlook Survey expect corporate credit defaults to rise globally over the next 12 months. Thirty eight percent of respondents think the level of defaults will remain the same, while 20% say defaults will decline. Taken together, the responses result in a minus -21.6 score in the latest reading of the IACPM Aggregate Credit Default Index, which, while negative, is still an improvement over an even more negative -36.6 reading three months ago at the beginning of July.