Default Risks Grow Across Most US Sectors in 2nd Quarter: S&P

Higher interest rates and recession fears could add to default pressures

A person holds a sign advertising a sale at Century 21, a retail outlet that announced it was filing for bankruptcy and closing its stores due to the economic impact of the coronavirus disease in Manhattan, New York City, on Sept. 26, 2020. Andrew Kelly/File/Reuters

The chances of default across a majority of U.S. business sectors rose in the second quarter, according to a new report by S&P Global Market Intelligence.

The study found that every sector, except for financial institutions, posted a higher median market signal—a one-year probability of default score by the end of the April-to-June period—compared with the first quarter.