At The Deal's Fifth Annual Private Capital Symposium, Diane Vazza, a managing director and head of global fixed-income research at Standard & Poor's, spoke about distressed investments and default rates.
Vazza said that there are about 236 distressed companies in the US and defaults are increasing. In this clip she outlines both the best case and worst case default scenarios. "The best case would be a default rate in the next 12 months of 3.7%, which means that 59 companies would default. In order to get to our worst case, which is 8.5%, 136 companies would have to default in the next 12 months," she said.
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