KBRA DLD Default Forecasts for Liquid Credit:
3.25% ($45B) for HY, 4.5% ($65B) for BSL

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KBRA DLD is forecasting a 3.25% default rate by volume (4% by number) for high yield by year end, and a 4.5% rate for syndicated loans (5.5% by number). That equates to nearly $45 billion of HY volume and puts defaulted syndicated loans on pace to surpass $65 billion, which would top the total registered in 2020.

In the months ahead, we expect HY and syndicated loan defaults to mimic the pace seen through the first half of the year. By number, DLD‘s forecasts call for 35 defaults in HY and 75 across syndicated loans for 2023.