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Global Corporate Defaults Just Hit 100, On Pace To Surpass Financial Crisis Record


by Tyler Durden
Jul 15, 2016 7:05 AM

The bizarre financial paradoxes unleashed by central planning continue.

While the S&P rises to new all time highs day after day, the IMF is about to downgrade global growth again, $13 trillion in global bonds trade with a negative yield, and the shape of the US yield curve is where it was the last time the US entered a recession. But what remains the most perplexing aspect of the unprecedented disconnect between market surreality and fundamentals, is the ongoing surge in corporate defaults, which is now on pace to surpass 2009, the worst year in history for corporate bankruptcies.

According to S&P, with half of 2016 in the history books, corporate bond defaults just hit the milestone “century” mark, or 100, last week, rising by 50% from the number of bankruptcies at this time last year and the highest level since the US emerged from recession in 2009. The number rose by four to 100 in the first full week of July, as defaults in the US oil and gas sector ratcheted higher, according to Diane Vazza of S&P Global Ratings, the FT reports.

As a result, the total amount of defaulted debt has risen to $154 billion.

But what is most troubling is that at the current run-rate, with half of 2016 still to come, the global debt default total is on pace to surpass 2009 for the all time corporate bankruptcy record.