Debt defaults to remain high, spreads to widen - survey

摘要

Britain's vote to detach from the EU and tepid global economic growth will foster more corporate debt defaults and wider credit spreads, according to a quarterly International Association of Credit Portfolio Managers survey. The outlook for defaults and spreads deteriorated the most for Europe, where the ripple effects of June's Brexit vote will take time to play out. While credit portfolio managers expect the Brexit impact will be contained to Europe, historically low to negative interest rates elsewhere are also damaging swaths of the credit markets, the survey found.