The number of sub-investment-grade European corporate bond defaults has risen dramatically in recent years, according to a new report by Moody's Investors Service, the international rating agency.

In the report, "Default & Recovery Rates of European Corporate Bond Issuers, 1985-2001", Moody's notes that 34 rated and 35 unrated European corporate issuers defaulted on around €22bn ($22.3bn) of debt between 1985 and 2001.