LONDON : JPMorgan ramped its 2023 global emerging market corporate high yield (HY) default rate forecast to 9.7 per cent from 6 per cent on Tuesday following the latest wave of problems in China's property sector.
The U.S. investment bank said Chinese property firms were expected to account for nearly 40 per cent of 2023’s corporate default volumes, followed by 35 per cent from Russia and 12 per cent from Brazil.
"Specifically, we raise Asia HY default rate forecast to 10.0 per cent from 4.1 per cent on the back of Country Garden and ripple effects to other parts of the sector," the bank's analysts said in a report, referring to China's largest private developer which is now struggling to make its debt payments.