NU Online News Service, Oct. 29, 11:46 a.m. – Standard & Poor’s, New York, is now predicting that 200 companies will default on their debt this year.
Defaults will affect roughly $100 billion in debt worldwide, up from $42 billion in 2000, S&P estimates.
S&P is expecting a default rate of 0.48% on debt securities with investment-grade credit ratings, and 9.4% on debt securities with low credit ratings.
U.S. life insurers held about $990 billion in investment-grade corporate debt in their general accounts in 1999, and about $100 in low-grade corporate debt, according to the American Council of Life Insurers, Washington.