Moody’s reports hike in HY defaults

European speculative-grade defaults rose during the third quarter, according to an October 8 report by Moody’s Investors Service. The default rate climbed to 2.8% at the end of the quarter, up from 2.2% at the end of the second quarter and from 0.8% at the end of the third quarter in 2006.

The scene in Europe is at odds with global trends, as the issuer-weighted speculative-grade default rate worldwide was at 1.3% at the end of the third quarter, down from 1.4% in the preceding quarter and 1.7% a