Creditsights' Cisar: Defaults to Creep Higher Into Next Year

The video discusses the impact of interest rate sensitivity on the corporate credit market, highlighting the supportive nature of flat curves for refinancing. It explores the nuances of the default cycle, noting that while defaults may rise, they are not expected to reach crisis levels. The discussion also covers the absence of acute stress in specific sectors, with companies leveraging low borrowing costs to manage rising rates. Finally, the video forecasts the 10-year treasury market, predicting flat curves and stable Fed rates.

What factors contribute to the shape of the curve in terms of interest rate sensitivity in the corporate credit market?

How does the current flat curve affect refinancing perspectives for companies?

What is the expectation regarding defaults in the corporate sector heading into next year?

What are the specific pressure points in the corporate sector that are causing stress?

What is the forecast for the 10-year treasury yield by the end of the year?