Distance to default: A default indicator for Australian-listed companies Vol 10

The Distance to Default (D2D) score serves as a useful metric for benchmarking company performance across different industries.

Consistent with our last report, our analysis indicates that the Financials and Real Estate sectors continue to display the highest D2D scores (furthest from default), with the Materials and Energy sectors displaying the lowest D2D scores. We have also seen strong growth in the Information Technology sectors which we highlight below. Market observations The latest D2D score of 1.95 is not only better than pre-pandemic levels (1.88 at December 2019) but also the strongest D2D score since ...

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Authors: James Stewart, Gayle Dickerson

Published Date: 01 February 2022