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Fitch U.S. High Yield Default Insight (U.S. High Yield Default Rate Remains Below 2%; Seadrill Propels Yankee Rate)

Several U.S. high yield companies have interest payments scheduled for Sept. 15 which, according to Fitch Ratings, if not made would move the default rate above the current 1.8% mark, and includes two large retailers.

Fitch U.S. Leveraged Loan Default Insight (Toys ‘R’ Us Filing Pushes Retail Loan Default Rate to New Highs)

The TTM U.S. institutional leveraged loan default rate is at 1.7%, down from 1.9% at end-July, marking what Fitch Ratings believes is a trough in the default rate. Fitch expects the default rate will end the year around 2.5%.

The U.S. trailing 12-month (TTM) high yield default rate dipped below 2% for the first time since March 2014, according to Fitch Ratings in a new report.

The trailing 12-month (TTM) retail institutional leveraged loan default rate climbed above 5% in July from 2.8% at end-June, according to Fitch Ratings. This year five retailers, including True Religion Apparel and J.Crew Group this month, have defaulted on $3.8 billion of loans. The retail sector loan default rate is now well above the non-recessionary average of 1.4%.