Credit managers expect more defaults

摘要

Credit managers are forecasting wider credit spreads over the next three months and rising loan defaults over the next 12 months, according to a quarterly survey by the International Association of Credit Portfolio Managers. Ninety-five percent of survey respondents said corporate credit defaults would rise in North America in the next year, while 91% said corporate defaults would increase in Europe. Many IACPM members said corporate loan borrowers would start to feel the impact of the coronavirus on the economy in a few months. Most borrowers will get through the US summer, which is often a slower period, but will then need additional liquidity, which could be challenging, according to the survey.