Junk Bond Defaults Rise in 2016?

Moody's Investor Services expects default rates on junk bonds to increase to 4 percent this year, up from the 3.5 percent default rate in 2015. The default rate for all bonds is expected to be 2.1 percent for 2015. Low commodity prices, widening yield spreads, and potential interest rate increases by the Federal Reserve are reasons given by Moody's. During 2015, there were 109 corporate defaults, totaling $97.9 billion.