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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: Ahda who wrote (1811)	4/9/2001 3:50:37 PM
From: Ahda	Respond to of 24758

Moody's sees junk bond defaults peaking in 2002 (UPDATE: Adds details, background; updates throughout) NEW YORK, April 9 (Reuters) - The global junk bond default rate will likely hit 9.9 percent in the first quarter of next year, its highest level in more than a decade, but should begin declining in March 2002, Moody's Investors Service said on Monday. The last time the global junk bond default rate was that high was October 1990, when the rate was 10.1 percent, Moody's sai Du Du?nies, defaults are likely to peak at 11 percent, Moody's said, repeating earlier projections. ???oor credit quality will keep default rates high for the rest of this year, the rating agency said. "A large portion of speculative-grade co???ult rates should start to decline early next year, however, after the peak risk period for default passes, Moody's said. About a third of outstanding junk bonds are at or near the age when default risk is typically highest, about four years after issuance, Moody's said. In the first quarter of 2001, companies defaulted on a total of $31.8 billion in debt, the worst quarter ever by dollar volume Gi???March from 4.4 percent in February. The telecommunications sector led defaults last month, with 30 issuers defaulting on $10.7 billion of bonds, Moody's said. That raised the global junk bond default rate to 7.1 percent in March from 6.7 percent in February. The largest default by a single company last month was RSL Communications, which defaulted in $1.6 billion in debt, Moody's said.