LONDON (Reuters) – JPMorgan ramped its 2023 global emerging market corporate high yield (HY) default rate forecast to 9.7% from 6% on Tuesday following the latest wave of problems in China’s property sector.
The U.S.
investment bank said Chinese property firms were expected to account for nearly 40% of 2023’s corporate default volumes, followed by 35% from Russia and 12% from Brazil.
“Specifically, we raise Asia HY default rate forecast to 10.0% from 4.1% on the back of Country Garden and ripple effects to other parts of the sector,” the bank’s analysts said in a report, referring to China’s largest private developer which is now struggling to make its debt payments.
(Reporting by Marc Jones, editing by Jorgelina do Rosario)
