JPMorgan's Revised Forecast for Emerging Market Corporate Defaults

Monday, 8 July 2024, 10:00

JPMorgan has adjusted its high yield EM corporate default forecast, anticipating a lower percentage of defaults globally and in the CEMBI Broad Diversified index. The key areas of concern remain China's property sector and 'repeat defaulters' in Latin America, while noting the absence of a Ukrainian default this year.

Yahoo Finance — JPMorgan's Revised Forecast for Emerging Market Corporate Defaults

JPMorgan's Forecast Adjustment

JPMorgan revised down the expected default rates for emerging market companies, citing improved market conditions.

Key Changes

Global Forecast: Reduced to 3.6% from 4.0% for high yield EM corporate defaults
CEMBI Index: Lowered to 2.1% from 2.9% for firms in CEMBI Broad Diversified index

While challenges persist in certain sectors, JPMorgan's analysis suggests a positive shift in default expectations.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.

JPMorgan's Forecast Adjustment

Key Changes

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