# Moody’s and NYU Stern Salomon Center hosted the 6th Annual Credit Risk Conference

Professor [Edward Altman](http://w4.stern.nyu.edu/faculty/bio/edward-altman), a world-renowned expert in the field of corporate bankruptcy, distressed debt and credit risk analysis, started off the event discussing "[How the Financial Crisis Has Affected the Credit Markets](http://www.moodys.com/microsites/crc2010/pres.htm)." Highlights of his presentation include:- The current yield to maturity (YTM) spread between high yield markets and 10-year treasury notes is in a similar position to where it was on June 12, 2007—prior to the onset of the Global Financial Crisis—two standard deviations below the mean.
- The drop off in the YTM spread between high yield markets and 10-year treasury notes seen throughout 2009 is a result of the stabilization of the stock market through the Federal Reserve's $1.2 trillion capital injection.
- This year, we will likely see a one-half to three-quarter of one percent default rate in the high-yield bond market.
- While there has been a drop in market volatility, the fact that interest rates are being kept artificially low is a cause for concern.
- We may face a wave of bankruptcies in 2013-2014 as corporations look to refinance existing debt at the same time as the federal government.

[View more presentations from the Conference>>](http://www.moodys.com/microsites/crc2010/pres.htm)

Research Center Events

— 5/13/2010

![](/sites/default/files/styles/480w/public/assets/images/uat_024818.gif?itok=qF8lm3FF)