July 2023

Credit cycle on the turn

“Higher for longer” is a mantra with which observers of the global interest rate regime have been familiar with for some time. As central banks worldwide remain resolved to stay the course of rate rises to counter obstinate inflation, so the effects of ‘normalized’ rates are beginning to bite in the form of rising levels of corporate defaults.

What's covered?

  • Credit cycle enters into late stage
  • Interest charges breach loan covenants
  • Private credit on an upswing