A storm of over $500 billion corporate-debt distress looms over the global economy, triggering concerns about its potential impact.
Easy availability of cheap credit has led to the accumulation of significant debt loads by companies worldwide.
Risky businesses in the U.S. and non-financial Chinese companies have seen a surge in debts, contributing to a looming debt wall.
Slowing economies and rising interest rates can compromise the ability of businesses to meet their debt obligations.
Rising defaults could strain credit markets, slowing economic growth, and lead to job losses.
Intentional tightening of monetary policy by central banks is contributing to the rising tide of corporate distress.
Private equity-owned companies face challenges due to the rise in interest rates, pushing many towards insolvency.
As interest rates rise, companies depending on consumer spending face significant challenges.
Emerging markets, especially those in energy and commodities sectors, face heightened default risks.