Investors in distressed securities appear to be less worried that the government's finances will hurt the economy, as the market prices in a 0.3% default rate, according to JPMorgan Chase. "Recent trends in asset prices will not change the trend in the default rate," said Peter Acciavatti, JPMorgan's head of U.S. high-yield and leveraged-loan credit strategy. "Our view is default rates will continue to fall due to the improvement in capital markets over the last year, even as markets have become a little choppy of late. We still like the asset class."

Full Story:

Related Summaries