A quarter of bonds face default risk due to debt refinancing
According to brokers, about 25% of all bonds are in a heightened risk zone for default. Companies are borrowing money to refinance their existing loans, increasing financial risks.
This situation indicates vulnerability in the bond market and potential payment difficulties ahead. Investors should exercise caution and closely assess the financial health of issuers.
What happens next will depend on companies’ ability to restructure their debts and the overall economic conditions affecting borrowers’ ability to repay.
