Leveraged loan default rates in the retail sector have soared to record levels amid the coronavirus outbreak — and they will likely continue climbing.
According to a report from S&P Global Market Intelligence, the US leveraged loan default rate in retail rose to a record high of 10.34%, pushed along by J.Crew Group Inc. and Neiman Marcus, two companies that entered Chapter 11 bankruptcy this month.
Over the last 12 months, five retailers have defaulted across seven term loan facilities, totaling $4.9 billion, or 16% of all default volume across all sectors, said the S&P report.
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Christine Simmons
Christine Simmons writes about the New York legal community and the business of law. Email her at csimmons@alm.com and find her on Twitter @chlsimmons
