Standard & Poor's Ratings Services last night warned that payment failure rates among US leveraged loans are expected to increase after soaring in October to their highest level this year. The caution comes as high-yield issuance hits a record.

S&P said four defaults were recorded in October, the single largest monthly count this year, bringing the year-to-date total to 22 defaults, affecting rated debt worth $6.3bn (€5.9bn).