The Telegraph reports: Moody's predicts default rate will exceed peaks hit in Great Depression.
In what will be seen by many as die-cast confirmation that the world economy is plummeting towards an economic and corporate implosion of unprecedented proportions, Moody's said it anticipated a tidal wave of defaults was approaching.
It said that in the coming months more than 15pc of speculative-grade bonds and loans - all but the most highly-rated - would default on their debts.
This peak is even higher than the peak reached in 1933, when bank after bank throughout America was collapsing, taking hoards of other companies with them. Back then, the default rate peaked at 15.4pc; moreover these companies were former investment grade issuers regarded as more reliable credit prospects than their contemporary counterparts.
Not that the EE would listen to Moody's, who are like the cheerleaders of this absurd credit boom, but it should be sobering to anyone willing to wade into the minefield that are corporate bonds particularly the junky punky ones.
Keep your powder dry. They can't bail out everyone.
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