More Green Shoots...... US Corporate Default Rate Edition

Green Shoots as far as the eye can see......... The "Green Shoots" or "Second Derivitive" nonsense will vanish as fast as the other buzz words like "Contained" , "Decoupling", "Cash On The Sidelines" , "Stock Are Cheap" etc......

Noch mehr Futter für all diejenigen die in jeder veröffentlichten Zahl momentan Green Shoots erkennen ..... Just kidding...... Bin mir sicher das die Bezeichnungen "Green Shoots" oder "Second Derivative" sich nahtlos in die Reihe der letzten Modebezeichnungen ( "Contained", Decoupling", "Cash On The Sidelines" usw ) einreihen werden. Warum wundert es mich eigentlich nicht das alle permanent suggerieren das das nun der Zeitpunkt gekommen ist einzusteigen.....

Thanks to Telegraph

FT Alphaville S&P said on Monday the US corporate default rate had hit a seven-year high:

Corporate defaults continue to rise rapidly in 2009, nearly matching the number in all of 2008. Through May 13, 2009, 121 issuers defaulted, affecting debt worth $297.22 billion. By comparison, 126 defaults were recorded in all of 2008, affecting debt worth $433 billion. Of the 121 defaults in 2009, 85 are from the U.S., 21 are from emerging markets, seven are from Europe, six are from Canada, and one each is from Australia and Japan.

Nice to see that markets are allowed to work in at least some parts of the market........Now add the following chart & read examples like this ( see Another Private Equity Deal That Went Bust Within 24 Months ) and you get even more green shoots.... Sarcasm off......

Immerhin schön zu sehen das dem Markt zumindest in einigen ausgewählten Teilen der Wirtschaft erlaubt wird zu arbeiten....... Der nachfolgende Chart kombiniert mit Beispielen wie diesem lassen erahnen das hier in der nächsten Zeit noch die ein oder andere nette Überraschung auf uns wartet.......

Number Of The Day " Percentage Of US Companies With A Junk Rating"

About 50% of U.S. companies have below-investment-grade credit ratings