Defaults on $1.4 trillion in US subprime loans have risen sharply this year on the back of higher interest rates.
These loans were granted to entities that do not have a good credit rating in the United States and are an important source of financing for many companies.
The total number of defaults this year has exceeded 2021 and 2022 combined, and there have been 18 debt defaults since the beginning of the year and the end of May for a total of $21 billion, according to Goldman Sachs data.
The month of May alone saw 3 defaults totaling $7.8 billion, the highest amount since the Corona crisis three years ago.
Bank analysts and rating agencies expected defaults to rise further as interest rates were kept higher for longer.