Deutsche Bank: Massive debt defaults by companies are imminent due to fastest monetary tightening in 15 years.

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Default wave imminent, will peak in 2024, Deutsche Bank says

LONDON, May 31 (Reuters) – A wave of debt defaults by companies in the United States and Europe is imminent, due in part to the fastest monetary tightening cycle in 15 years, Deutsche Bank said in its annual default study released on Wednesday.

Deutsche expects default rates to peak in the fourth quarter of next year. It forecast peak default rates to reach 9% for U.S. high-yield debt, 11.3% for U.S. loans, 4.4% for European high-yield bonds and 7.3% for European loans.

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