13 Sep 2025 | 5 Mins Read
Citi disputes default rate as risk indicator for investors
Flipitmoney
Researchers at Citi found that default rates are becoming harder to predict due to an increase in distressed exchanges, where companies restructure debt. These exchanges have outnumbered traditional defaults by 3 times, inflating default rates and making risk assessments inaccurate. Citi analysts track a Bloomberg high-yield index, which they see as more indicative of market performance, at 2.6%.