Speculative-Grade Default Rate Jumps In November Amid Ongoing Oil Woes

Throughout 2015 and 2016, despite the accommodative monetary policies from central banks around the world, the global speculative-grade default rate rose to 4.2%–its highest level since 2009 according to rating agency Standard & Poors. Defaults spiked thanks to the rising level insolvencies in the oil & gas sector, as companies continue to feel the pain from the 2014 oil price downturn. Hedge Fund Q3 Letters At 4.2% defaults were running just above the 36-year annual average of 4.1%. However, excluding energy, at the end of 2016, the global speculative-grade default rate excluding energy and natural resources was a much more modest 2.3%. The…