Capital Restructuring | Third Quarter 2020

November 2020 – At the end of Third Quarter 2020, Moody’s and S&P reported default rates of 9.0% and 6.2%, respectively. According to S&P, about 70% of corporate defaults are in four sectors: consumer products, oil and gas, retail and restaurants, and media and entertainment sectors. Default rates in 2021 are forecast to rise sharply to 12.0% (Moody’s: February 2021) and 12.5% (S&P: March 2021). The unprecedented pace at which funding markets normalized in 3Q2020 mitigated initial fears of elevated defaults.

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