Corporate bankruptcies surge on high interest rates, uncertainty

The Federal Reserve plans to keep hiking interest rates to stem inflation, which means an increase in corporate default rates is likely in coming months.

The corporate default rate rose in May, a sign that U.S. companies are grappling with higher interest rates that make it more expensive to refinance debt as well as an uncertain economic outlook.

There have been 41 defaults in the U.S. and one in Canada so far this year, the most in any region globally…