Corporate America’s Credit Quality Collapses in the First Quarter

Corporate America’s credit quality collapsed in the first quarter, with Moody’s Investors Service downgrading an estimated $1.76 trillion of debt, a record high, the rating agency said on Wednesday.

The downgrades included a record number to the lowest rating categories, signaling the approach of the worst defaults since at least World War Two, Moody’s chief economist John Lonski said in an interview.
…
“The most prominent new driving force behind credit rating reductions would be deterioration of commercial real estate,” Lonski said. That is taking a toll on regional banks and companies that manufacture equipment and material used in construction, he said.
…
Moody’s has forecast that the U.S. default rate will peak around 14.5% in November. [via Reuters]

• Become A Funded Futures Trader