Lenders are expecting default rates on middle market loans to spike in the second quarter as the fallout from the coronavirus pandemic makes an impact on the ability to repay debt.

That's according to a story in Bloomberg News that cites a new new survey from Carl Marks Advisors in which three-quarters of respondents said default rates among non-investment grade borrowers will hit or exceed 10%.

“You’re clearly seeing situations unfold as the first, second and third layer of borrowers is impacted and you’re seeing it affecting a much wider swath of the economy in much more deep, unknowable ways,” Brian Williams, a partner at the firm, said in an interview with Bloomberg.

To read the Bloomberg story in full click here.