ML-Implode News - Default Tsunami Brewing

Investors worriedÂ byÂ a potential second wave ofÂ defaults in the U.S. should be even more concerned about emerging markets.Moody's Investors ervice says default rates currently stand at about 4 percent and could soar to as high as 14.9 percent by the end of the year under the most pessimistic scenario, Bloomberg News reportsÂ today.Â Its best-case projectionÂ is a 5.05 percent rate.
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Edward Altman, New York University professor and creator of the widely used Z-Score method for predicting bankruptcies, has also forecast rising U.S. defaults this year, saying in January that recession could follow even with a rate of less than 10 percent, given the increase in debt since the financial crisis.
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If history is any guide, there's a lot more to come. Another wave of defaults in the U.S. will trigger a tsunami in emerging markets.

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Default Tsunami Brewing