In the Asian session on Thursday (June 1), the latest price of the U.S. dollar index was 104.19, and the opening price was 104.22. A wave of debt defaults by U.S. and European companies is coming, with default rates expected to peak in the fourth quarter of next year. Maximum default rates are expected to be 9% for U.S. high-yield bonds, 11.3% for U.S. loans, 4.4% for European high-yield bonds and 7.3% for European loans.
European companies appear to be at lower risk of default than the U.S. due to a higher proportion of higher-rated bonds, greater fiscal support in Europe and lower levels of debt in high-growth sectors such as technology. But within the European high-yield bond market, real estate is the most stressed sector, accounting for more than half of all high-yield distressed bonds in Europe. Fresh capital from corporate private equity owners, fiscal stimulus in Europe and central bank rate cuts may help mitigate some of the risks, but they still won‘t stop defaults from rising.
