Nasdaq 100

Nasdaq 100 Index

On Monday, Deutsche Bank officials noted that U.S. leveraged loans default rate would end 2024 at 11.3%, according to their forecasts. The 2024 anticipated default rate on euro leveraged loans will equate to roughly 7.1% amid a worsening global economic situation.

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%.

As a result of this year's global downturn in stock and bond prices and the deterioration in private equity amid declining deal flow, investors around the world have been looking for new opportunities.

According to the Federal Reserve Bank (FRB) of New York, credit card debt rose $38 billion to $925 billion in Q3, getting the numbers closer to the pre-pandemic level of $930 billion. That's the biggest quarterly jump in more than 20 years.

The Nasdaq 100 Index rose significantly at the end of last week. At the same time, there were record cash inflows into the ProShares UltraPro Short QQQ (SQQQQ)