Leveraged loan default rates in the retail sector have soared torecord levels amid the coronavirus outbreak — and theywill likely continue climbing.
According to a report from S&P Global MarketIntelligence, the US leveraged loan default rate in retail rose toa record high of 10.34%, pushed along by J.Crew Group Inc. andNeiman Marcus, two companies that entered Chapter 11bankruptcy this month.
Over the last 12 months, five retailers have defaulted acrossseven term loan facilities, totaling $4.9 billion, or 16% of alldefault volume across all sectors, said the S&P report.
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Christine Simmons
Christine Simmons writes about the New York legal community and the business of law. Email her at [email protected] and find her on Twitter @chlsimmons
