A wave of corporate defaults is looming, with the U.S. expected to be hit harder than Europe, Deutsche Bank said in a Wednesday report.
Its strategists forecast that credit losses will rise steadily this year, before picking up more sharply in 2024, when they expect a recession in the U.S.
“Our cycle indicators signal a default wave is imminent. The tightest Fed and ECB policy in 15 years is colliding with high leverage built upon stretched margins,” they said in Deutsche Bank’s annual default study, which is closely read by investors.
Source: https://www.wsj.com/livecoverage/stock-market-today-dow-jones-05-31-2023/card/a-wave-of-defaults-and-a-recession-is-imminent-deutsche-bank-forecasts-AYSGpPtYPEnfPejvoIDk?siteid=yhoof2&yptr=yahoo