According to data from Standard & Poor rating agency, global corporate defaults are on the rise and in 2015, it has hit highest since 2009.

According 34 year history, as shown in figure default rates move up during period of stress and recession. During recession of 1990-91, number of defaults averaged at 82 more than 34 year historical mean. Though 2001 recession was short, repercussion of dot com bubble burst in US was very large. From 1999 to 2003, average 160 companies defaulted per year.

Number of defaults were also record during 2008/09 crisis era. In 2009, average 268 corporates defaulted across globe.

So it is naturally alarming when default rate in 2015 almost doubled from a year ago. In 2015, 112 companies went bust, 66 of them are from US. Defaults in emerging market has also hit highest in six years, with 25 defaulting in 2015. Default rates have been highest in oil and gas sector, comprising of 26% of total defaults.

So, 2016 would be crucial to watch out if situation worsens or improves.