A report recently released by rating agency Moody's shows that in the 12 months ending in October, the default rate of global leveraged loans (mostly in the United States) rose to 7.2%, the highest level since the end of 2020, mainly because indebted companies continued to be harmed by the high interest rate environment.

This report highlights the challenges faced by heavily indebted companies in the current high interest rate environment. It's crucial for businesses to carefully manage their debt levels to avoid defaulting on leveraged loans. A timely reminder for companies to prioritize financial stability in these uncertain times.