The document analyzes the impact of US interest rate hikes on BBB credit spreads and default rates. It includes historical data on credit spread changes across 12 rate cycles since 1950 and discusses the potential impact of future rate hikes on credit markets. The analysis suggests that while the immediate impact of a rate hike is not usually negative for credit, a cycle of rate rises could lead to increased defaults 30 months later.
documents/vol00010-efta01458271-pdf.pdf
{"title":"Corporate Credit: Back to school - The edge of normality","document_date":"September 2015","document_type":"tabular","document_subtype":"financial analysis","key_organizations":["Deutsche Bank","Moody's"],"reference_numbers":["DB-SDNY-0118105","SDNY_GM_00264289","EFTA01458271"]}