Greatest number of defaults in a single month since the Great Depression

While March saw equity markets rallying - the experience of the corporate credit sector was somewhat different.

RBC Capital has a summary of Moody’s March default report, released late Monday.

Moody’s released its default report for March which saw a pick-up in the default rate from 5.2% in February to 7% in March. There were a total of 35 defaults in March which marks the greatest number of defaults in a single month since the Great Depression, according to Moody’s. In the US, the default rate rose from 4.5% to 7.4% whilst in Europe, the rate jumped to 4.8% from 2.0% in the previous quarter. The Moody’s forecasting model now sees default rates peaking at 14.6% in Q4 2009 which is down moderately from previous months as high yield bond spreads have tightened. European default forecasts remain the highest at a forecast peak of 21% in Q4 2009.

Bit of a mixed message there — but in case you’re wondering — default levels during the Great Depression peaked at 15.4 per cent, according to Moody’s.

http://ftalphaville.ft.com/blog/2009/04/07/54545/moody-march/

 

It's a fake, mental recession.

Things are great and getting better.

Unemployment, pay cuts, foreclosures, car and housing sales plunging, people burning their boats and RVs for the insurance money doesn't matter.

Buy stocks.

 

I want to smoke what you are smoking, I can tell it hits good

 

http://www.bloomberg.com/apps/news?pid=20601087&sid=aPPY7XFSHnzk&refer=home

http://www.nytimes.com/reuters/2009/04/07/business/business-us-usa-economy-roundtable.html?_r=1

Bullish