Fitch Ratings has raised its U.S. corporates institutional leveraged loan (LL) and high yield (HY) bond default forecasts, reflecting the tighter lending conditions and capital access resulting from stress in the banking sector and inflation uncertainty. These factors, along with higher borrowing costs are meaningful challenges to weaker issuers’ ability to address refinancing and liquidity needs. Therefore, we expect an increase in bankruptcy filings and distressed debt exchanges (DDEs). {table} We have raised our 2023 HY bond default rate forecast to 4.5%-5.0% in 2023 from 3.0%-3.5%. Since January, on a net basis, ... (full story)