It's Wednesday, June 24th, 2020, just after market close in London.

This is the Real Vision Daily Briefing.

I'm Ash Bennington from New York, joined shortly by Roger Hurst from the UK.

But first, Nick Correa with today's stories.

Thanks, Ash.

Today, the International Monetary Fund had downgraded its global GDP projections for this year,

as well as its growth projections for the next year. In April, the IMF projected a 3%

contraction in the global economy for 2020. But now they've updated it to a 4.9 contraction.

This indicates that they're expecting an even deeper recession than they had originally

predicted. Also in April, the IMF projected that the global growth would be 5.8%.

Now it's only 5.4%, as they anticipate the economic slump becoming greater.

Even with these updated estimates, the road to recovery and the obstacles we will face is still murky.

Supply chains globally have been highly disrupted.

Demand may continue to lag and even dip going forward,

and businesses are still packing on debt to

weather the rough months ahead. Looking at credit default swaps or CDS markets

can help us get a pulse on the health of corporate bonds from another angle.

The two main CDS indices in the US pulse on the health of corporate bonds from another angle.

The two main CDS indices in the US experienced major volatility in late March when the

investment grade index spiked to just under 150 BIPs.

It now hovers around 75 bips, implying an expected default rate of 0.75%.

The high-yield index spiked to 880 bips, and it now stands at just under 500 bIPs implying an expected aggregate default rate of 5%.

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