The trailing 12-month default rate on high yield paper rose to 2.2% in May, reports Fitch,...

|By:, SA News Editor

The trailing 12-month default rate on high yield paper rose to 2.2% in May, reports Fitch, rising above 2% for the first time since October 2010. The agency blames the "CCC factor," where funding for the weakest companies began to dry up last summer and is showing in defaults now. Fitch expects the rate to rise to the 2.5-3% level by year's end.