Deutsche Bank Report: High-Yield Bonds and Loans Face Default Risk in the Next Three Years

According to an annual report by Deutsche Bank, high-yield bonds and loans in the United States and Europe face the risk of default in the coming years.

The report indicated that the rates of default on high-yield debts increased significantly during 2023, as a result of the economic pressures resulting from global inflation.

The report expected these rates to rise further in the next three years, as the default rate on high-yield bonds in the United States will reach 9% by the end of 2024, and the loan default rate will reach 11.3%.