Chart 19 Share of new loans to firms by fixation period (left panel); relation between firms’ default risk and net leverage by debt servicing cost (right panel) (left panel: share as a percentage of new loans; right panel: x-axis – net debt level as a percentage of total assets; yaxis – expected default frequency in percentages)  Sources: ECB (MIR), Worldscope, Refinitiv, Moody’s and ECB staff calculations.
Notes: Left panel: the latest observations are for December 2022. Right panel: high debt servicing costs are those above the median, while low debt servicing costs are those below the median. Net debt is measured as a percentage of value added. The chart is a bin scatter.