Capital Restructuring | Second Quarter 2020

August 2020 – At the end of Second Quarter 2020 Moody’s and S&P reported default rates of 7.3% and 5.3%, respectively. According to Moody’s, companies with eroding liquidity will push defaults higher in 2021 while debt recoveries will be lower than during previous recessions. Default rates in 2021 are forecast to rise to 10.5% (Moody’s: July 2021) and 12.5% (S&P: March 2021).