DX

US Dollar Index

Highly leveraged companies are once again ramping up long-maturity loans amid an expected slowdown in the Federal Reserve's interest rate hikes.

According to investors, stagflation will pose a key threat to the global economy in the coming year. They also believe that after this year's sell-off, it is too early to expect a rally in the markets.

S&P Global Ratings predicts that the corporate default rate could reach 3.75%. This will likely happen if the U.S. Fed, instead of lowering inflation, achieves a slight economic downturn through its actions. In case of the recession, the projected rate increases to 6%.

According to Monday’s announcement made by Moody's, an international rating agency, credit conditions for non-financial companies in Europe, Africa, and Middle East might deteriorate significantly in the following year.

The FRS will lower the tempo for interest rate increases by 50 basis points in December. According to a Reuters survey, economists believe