Defaults Set to Soar Amid Rising Borrowing Costs and ‘Extremely High’ Recession Risk

Defaults Set to Soar Amid Rising Borrowing Costs and ‘Extremely High’ Recession Risk
U.S. Federal Reserve Chair Jerome Powell speaks during a news conference in Washington, on June 15, 2022. Olivier Douliery/AFP via Getty Images
Tom Ozimek
Tom Ozimek
Reporter
|Updated:
0:00

An association of fund managers has issued a dire prediction about the growing risk of credit defaults, warning that central bank interest rate hikes will trigger a wave of corporate defaults as borrowing costs soar and the threat of a global recession looms.

Not a single member of the International Association of Credit Portfolio Managers (IACPM) expressed the view that corporate defaults would decline, according to the latest quarterly survey carried out by the group and released on July 14.

Tom Ozimek
Tom Ozimek
Reporter
Tom Ozimek is a senior reporter for The Epoch Times. He has a broad background in journalism, deposit insurance, marketing and communications, and adult education.
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