Currently, the U.S. high-yield rate is at 0.3 percent -- the lowest it has been since 2001. A report by Fitch Ratings showed that the current level is down from the 2021 year-end level and below the record low of 0.4 for April 2007.
According to the report, there have been no defaults reported in six of the past 12 months. Fitch experts predict that default activity will increase in March 2022 and default rates will remain at low levels throughout 2023. The report expects healthcare, pharmaceuticals, technology, and retail sectors to have 1 percent or lower default rates for 2022 and 2023. The company also expects the energy sector to have a 0.5 percent rate in 2022 and a 1.5 percent rate in 2023.
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