US corporate debt defaults surge 176% as the Fed's war on inflation pushes more companies into financial distress

Fri, 09/15/2023 - 05:34

Debt defaults by US companies surged 176% in the first eight months of 2023 from the year-earlier period, S&P data shows, as high interest rates push more businesses into financial distress.
As many as 69 firms missed debt payments during the January-August stretch, up from 25 in the same period of 2022.
The media and entertainment industry was the most affected, with a sixfold jump in defaults.

The steepest surge in US interest rates since the 1980s is pushing more businesses into financial distress.