Investors recouped just 5% of money invested in telecom bonds that defaulted in the second quarter, according to a new report.
In its analysis of recovery rates, Fitch, the rating agency, said. "The weighted average recovery rate on defaulted telecom bonds actually fell from 11% in the first quarter to 5% in the second quarter." Companies defaulting included 360Networks and PSINet, two US communications groups. The overall recovery rate for defaulted bonds was 25%, compared with 45% in the first quarter.
