The malaise in the U.S. bond market continues to go global, with the number of
overseas defaulting bond issuers rising again in 2001 largely at the hands of
the floundering telecommunications sector.

According to Standard & Poor's, 121 rated
global bond issuers have defaulted in 2001 on bonds totaling $74.3 billion,
already exceeding 2000′s full-year number of 108 issuers with a total of $34.3
billion in bonds. The rating agency said that 19% of the companies that
defaulted were in the telecom sector and accounted for 41% of the volume. Forest
products represented 9% of the companies and 10% of the volume. The rating
agency also reported that 76% of the bonds that defaulted in 2001 were issued
between 1997 and 1999.