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It is Latin America's biggest corporate default to date.
Corporate default rates, stunningly low in recent years, are sure to rise.
Should a bankruptcy occur, it would be the largest corporate default in Latin America's history.
But in an improving economy, when corporate default rates have plummeted, what's a bankruptcy expert to do?
With the economy recovering, albeit unevenly, corporate default rates have fallen and are expected to stay low.
Credit protection has particular appeal at a time of high corporate default rates.Commercial banks are continuing to shed corporate-credit risk using default swaps.
Similar(27)
Furthermore, historical recovery rates for defaulted municipal bonds have been much higher than for corporate defaults.
Corporate defaults are down but remain high.
Some analysts see a wave of corporate defaults coming.
Investors buy such derivatives as insurance against corporate defaults.
And the rate of corporate defaults has been rising.
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