Defaults of high-yield corporate bonds are accelerating and could bring a $46 billion wave of distressed debt in 2024, Bank of America says

• The US could see a $46 billion wave of distressed high-yield debt next year, BofA warned.
• That's because defaults are accelerating and could speed up at 1.5 times the pace next year.
• Higher interest rates could cause defaults and bankruptcies to peak in early 2024, experts warn.

Brace for a wave of distressed debt to hit the market as higher borrowing costs cause corporate defaults to accelerate, Bank of America warned.

The bank's strategists expected more pain stemming from higher interest rates, with the central bank having raised its fed funds rate target to the highest level since 2001.