Companies have extended their debt maturities, averting a 'tsunami of defaults' from higher rates, Bernstein says

• Investors can expect a "moderate default rate" in the next 12 to 18 months, Bernstein analysts wrote.
• Despite higher interest rates, companies have extended their debt maturities, easing pressure.
• "That said, we think investors should favor higher-quality credits, remain selective and pay attention to liquidity."

Companies have extended their debt maturities, easing the much-feared impact of rate hikes from the Federal Reserve.

And as long as bond investors remain attentive to credit quality, there's little reason to panic over a weaker corporate environment, a Bernstein note said on Friday.