From Yahoo Finance: 2025-06-09 09:23:00

Deutsche Bank predicts higher default rates for riskier U.S. companies in 2026, citing weakening economic growth and higher interest payments. Default rates for U.S. speculative grade companies are expected to rise from 4.7% to 4.8% by the second half of the year. Tight monetary conditions and slow growth contribute to the forecasted increase, with a 30% chance of recession. The U.S. 10-year yield is currently around 4.5% and is expected to remain elevated due to inflation concerns and tightening bank lending standards. The Fed is cautious about cutting rates before job cuts occur.

Read more: US corporate defaults to rise on higher-for-longer funding costs, says Deutsche Bank