Russia, China Woes Risk Worst EM Corporate Default Wave Since Financial Crash: JPMorgan

Russia, China Woes Risk Worst EM Corporate Default Wave Since Financial Crash: JPMorgan
A delivery man hauls packages past stores advertising international logistics transportation to Russia, in Ritan International Trade Center in Beijing on March 22, 2022. Jade Gao/AFP via Getty Images
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LONDON—JPMorgan has warned that the combination of Russia’s war in Ukraine and China’s ongoing property crash could see the worst wave of corporate defaults since the global financial crisis.

A new report from the bank’s analysts on Monday estimated the emerging market-wide default rate would now reach 8.5 percent, more than double the 3.9 percent they expected at the start of the year before the war in Ukraine.