{"id":21779,"date":"2020-07-01T11:10:43","date_gmt":"2020-07-01T10:10:43","guid":{"rendered":"http:\/\/starthostunlimiteddmffassi-ss.stackstaging.com\/etfworld.co.uk\/?p=21779"},"modified":"2020-07-01T11:42:26","modified_gmt":"2020-07-01T10:42:26","slug":"tabula-huge-increase-in-north-american-corporate-credit-defaults","status":"publish","type":"post","link":"https:\/\/www.etfworld.com\/co.uk\/tabula-huge-increase-in-north-american-corporate-credit-defaults\/","title":{"rendered":"Tabula : huge increase in North American corporate credit defaults"},"content":{"rendered":"<p style=\"text-align: justify;\">Tabula ETF provider predicts huge increase in North American corporate credit defaults. Financial market indicators appear optimistic relative to both credit and economic indicators &#8230;<\/p>\n<p style=\"text-align: justify;\"><!--more--><\/p>\n<p style=\"text-align: center;\"><a href=\"\/newsletter\" class=\"broken_link\"><strong>Sign up to our free newsletters<\/strong><\/a><\/p>\n<hr \/>\n<p style=\"text-align: justify;\"><strong>Michael John Lytle<\/strong>  <strong>Tabula CEO<\/strong><\/p>\n<hr \/>\n<p style=\"text-align: justify;\"><strong>    YTD defaults in North American corporate credit are the highest since 2009<\/strong><\/p>\n<p style=\"text-align: justify;\"><strong>Michael John Lytle says investors should review their allocation to high yield US debt and develop investment strategies to hedge against a rise in defaults<\/strong>.<\/p>\n<p style=\"text-align: justify;\">Below are some of the other points on this issue that he can discuss:<\/p>\n<p style=\"text-align: justify;\"><strong>    Despite the recovery in equity markets the outlook for North American corporate credit paints a different picture; YTD defaults in North American corporate credit are the highest since 2009<\/strong><\/p>\n<p style=\"text-align: justify;\"><strong>    In March, Fitch raised its 2020 \u201cbase case\u201d default rate for US high yield to 5-6%, with a \u201csevere case\u201d forecast of up to 10%, highlighting the energy sector as particularly vulnerable<\/strong><\/p>\n<p style=\"text-align: justify;\"><strong>    Moody\u2019s optimistic scenario, published in April, sees defaults in North American speculative credit peaking at over 13% in March 2021. Their pessimistic scenario is for well over 20%<\/strong><\/p>\n<p style=\"text-align: justify;\">    S&amp;P\u2019s base case is for the 12-month trailing US speculative grade corporate default rate to hit 12.5% by March 2021 (vs 3.5% in March 2020); requires 233 companies to default.<\/p>\n<p style=\"text-align: justify;\">Even in their optimistic scenario defaults will almost double (6% by March 2021 and 112 defaults). Pessimistic scenario sees default rate expand to 15.5% (with almost 300 defaults).<a href=\"#_ftnref2\" name=\"_ftn2\"><\/a><\/p>\n<p style=\"text-align: justify;\">Source : ETFWorld.co.uk<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tabula ETF provider predicts huge increase in North American corporate credit defaults. Financial market indicators appear optimistic relative to both credit and economic indicators &#8230;<\/p>\n","protected":false},"author":4,"featured_media":21362,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"telegram_tosend":false,"telegram_tosend_message":"","telegram_tosend_target":0,"footnotes":"","_wpscp_schedule_draft_date":"","_wpscp_schedule_republish_date":"","_wpscppro_advance_schedule":false,"_wpscppro_advance_schedule_date":"","_wpscppro_dont_share_socialmedia":false,"_wpscppro_custom_social_share_image":0,"_facebook_share_type":"","_twitter_share_type":"","_linkedin_share_type":"","_pinterest_share_type":"","_linkedin_share_type_page":"","_instagram_share_type":"","_medium_share_type":"","_threads_share_type":"","_google_business_share_type":"","_selected_social_profile":[],"_wpsp_enable_custom_social_template":false,"_wpsp_social_scheduling":{"enabled":false,"datetime":null,"platforms":[],"status":"template_only","dateOption":"today","timeOption":"now","customDays":"","customHours":"","customDate":"","customTime":"","schedulingType":"absolute"},"_wpsp_active_default_template":true},"categories":[337,12],"tags":[269],"class_list":["post-21779","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-esg","category-etf-analysis","tag-tabula"],"blocksy_meta":{"styles_descriptor":{"styles":{"desktop":"","tablet":"","mobile":""},"google_fonts":[],"version":6}},"_links":{"self":[{"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/posts\/21779","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/comments?post=21779"}],"version-history":[{"count":1,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/posts\/21779\/revisions"}],"predecessor-version":[{"id":21780,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/posts\/21779\/revisions\/21780"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/media\/21362"}],"wp:attachment":[{"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/media?parent=21779"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/categories?post=21779"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.etfworld.com\/co.uk\/wp-json\/wp\/v2\/tags?post=21779"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}