S&P: Corporate-bond prices reflect high anticipated defaults

04/3/2008 | Bloomberg

Deven Sharma, president of Standard & Poor's, said prices for corporate bond reflected an expectation by investors that defaults would soar. "The markets are pricing in a default rate of 9 or 10% for high-yield corporate debt, which is a lot higher than we're forecasting," Sharma said. "There is a recession, and the recovery will be somewhat slower than we anticipated."

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