A credit crunch could more than double the rate that some US companies default on their debts, Societe Generale says

• A credit crunch could more than double the rate some US companies default on debts, Societe Generale said.
• The European bank estimated lending conditions were at their tightest level since the pandemic.
• That could lead US speculative-grade debt defaults to more than double the average rate, it warned.

The crunch in credit conditions could more than double the rate that some US companies will default on their debts, according to Societe Generale.

Strategists at the European bank pointed to tighter lending standards in the US as turmoil ripples through the banking sector. Silicon Valley Bank, First Republic Bank, and other regional lenders have collapsed over the past two months, which is expected to make banks less willing to offer loans.