A U.K.-based investment firm said Friday that it expects to spend $8.4 trillion on bad loans this year, nearly double the total for the first time in its history.
A study by Credit Suisse analysts said the bad loans represent about $8,600 of the $9.2 trillion in total bad loans issued in the United States in 2014.
The bad loans will total $1.3 trillion.
Credit Suse said its bad loans are largely owned by wealthy investors, and many of them are concentrated in the banking sector.
CreditSuse said the firm expects its bad loan portfolio to grow by about 50% annually over the next five years, compared with the 4.5% increase in its overall portfolio over the same period.
“Our bad loans, which include the loans issued by lenders with assets of more than $2 trillion, represent approximately 5% of all bad loans in the U.M.S.,” Credit Susey analysts wrote in a report.
“The vast majority of these loans are concentrated within a few hundred U.s. banks.”
Bad loans represent less than 10% of the U and British total bad loan portfolios, the analysts wrote.
They also said they expect the total bad lending portfolio to decline, which is expected to be due to several factors including the weak economy and a weakening dollar.
A number of U.C.L.A. colleges and universities, including Los Angeles University, Stanford University, the University of Southern California, and the University at Buffalo, are the largest contributors to the bad loan market.
The university system reported Thursday that it was down $400 million in 2015 due to bad loans.