In 2023, corporate debt defaults experienced a substantial 80% increase, with 153 companies failing to meet their debt obligations, compared to 85 the previous year. This rate was the highest in seven years, excluding the peak during the Covid-19 crisis. The defaults were predominantly among low-rated companies with negative cash flows, heavy debt burdens, and weak liquidity, especially in the consumer-facing sectors, such as media and entertainment. According to S&P Global Ratings, the situation may remain challenging in 2024. Corporate America, currently shouldering a $13.7 trillion debt load, may face further credit deterioration, especially among lower-rated issuers. Despite potential rate cuts, financing costs are expected to stay high.
CEO and Founder of CanAm Bullion has been dedicated to delivering exceptional value to Canadians since 2017. Driven by a mission to empower Canadians with expert investment advice and education, he has positioned CanAm Bullion as a trusted resource for those seeking to enhance their portfolios with precious metals. Under Michael’s leadership, the company has become synonymous with reliability, knowledge, and dedication, helping Canadians achieve greater financial stability and long-term success.
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