Defaults Accelerating: Beware the Coming Credit Crunch
Defaults accelerating: Beware the coming credit crunch
A quick PSA from RBA: Beware of the coming credit crunch. The key goal of tightening monetary policy is to reduce the flow of credit. It is also important to note that the weakest links always default first. This cycle is so far no different. Small, private, and flawed companies lead defaults of large, public, and seemingly financially sound companies.