S&P 500
7,464.60
+0.16%
Dow Jones
52,328.10
+0.06%
Nasdaq 100
29,956.70
+0.52%
Russell 2000
3,014.42
+0.17%
FTSE 100
10,533.00
-0.07%
Nikkei 225
70,647.30
-0.01%

Economy

Corporate Default Rates Expected To Soar

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Updated Published

BearThe damage of the recession is beginning to move from the financial sector to other parts of the economy.

According to the FT, "The Markit iTraxx Crossover index rose above 1,000 basis points for the first time since it was created in 2004, implying a record number of companies are on the verge of default because of deepening financial problems."

"The index, which measures the cost of protecting junk-grade companies against default, has risen sharply in the past month as sentiment has worsened because of gloomy numbers on the global economy and worries over whether companies will be able to refinance their debt."

Douglas A. McIntyre

Contact [email protected] for any questions or corrections.

Follow 24/7 Wall St. on Google
Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

Continue Reading

Bank Stocks Lag Broader Market but Insiders Are Still Buying ‘Em
247patrick |

Bank Stocks Lag Broader Market but Insiders Are Still Buying ‘Em

Company insiders continue to buy large amounts of the stocks of U.S. financial companies, in general, and commercial banks, in…

Douglas A. McIntyre |

DJIA In Trouble

The DJIA starts the week at 12,269.38. There are plenty of forecasters who believe it will reach 11,000 long before…

Douglas A. McIntyre |

Greece Plunges Back Into Recession

While the euro area and several countries did well in the first quarter, Greece moved back into a recession, highlighting…

Is the S&P 500 Now Your Portfolio’s Biggest Risk?
Rich Duprey |

Is the S&P 500 Now Your Portfolio’s Biggest Risk?

For decades, the default answer to almost any investing question was simple: buy an S&P 500 index fund and hold…

Douglas A. McIntyre |

Typhoid Mary And Finding The Man Who Started The Global Recession

Some communicable diseases can be traced back to what medical researchers call "patient zero", the first carrier of an illness…

Douglas A. McIntyre |

Spain’s Economy Disintegrates

Spain made an important announcement about its first quarter economic activity and another about the month of April. The National…

Douglas A. McIntyre |

The Ten Best Investments If The US Defaults

The odds that the U.S. will default on its debt on or after August 2 increase each day. Some credit…

Douglas A. McIntyre |

What’s Important in the Financial World (1/25/2012) iPhone 5, Germany Confidence

Apple (NASDAQ: AAPL) investors had to pinch themselves yesterday. Revenue at the company soared to $46.3 billion. Almost certainly it…

Douglas A. McIntyre |

Greece May Finally Sell Its Most Beautiful Islands

The Greek government is between Scylla and Charybdis. It can restructure its debt, which would ruin its ability to raise…

Top Gaining Stocks

Corning
GLW • Vol: 24,307,400
KLA
KLAC • Vol: 14,628,648
Western Digital
WDC • Vol: 11,268,872
Applied Materials
AMAT • Vol: 14,164,881
Axon Enterprise
AXON • Vol: 1,847,989

Top Losing Stocks

Honeywell
HON • Vol: 7,773,157
Coterra Energy
CTRA • Vol: 73,319,495
Super Micro Computer
SMCI • Vol: 91,227,161
Copart
CPRT • Vol: 18,101,097
Ulta Beauty
ULTA • Vol: 895,681