Default lines
For the past year, a more stable economic environment, positive financing conditions and improvements to corporate balance sheets have steadily reduced default probabilities. At the end of September, the Standard & Poor’s global corporate speculative-grade default rate fell to 1.64%, down from 1.69% at the end of August and well below the long-term average of 5.27%. And as default rates have fallen, some interesting opportunities have arisen.
Although default probabilities have fallen overall in
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