- The number of defaults by highly leveraged companies could rise significantly amid tightening credit conditions, according to S&P Global Ratings.
- The agency estimates that the proportion of corporations whose debt-to-earnings exceed 5x - stood at 37% in 2017, compared to 32% before the financial crisis.
- Removing the "easy money punch bowl" could trigger the next default cycle since high corporate debt levels have increased the sensitivity of borrowers to elevated financing costs.
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