Corporate bankruptcies and defaults are surging – here’s why
“Companies are defaulting on their debt due to uncertain economic conditions and heavy debt loads. High interest rates have made it difficult to refinance, as debt is more expensive.”
USAGOLD note: And we have more rate increases ahead of us……The bankruptcy numbers suggest a developing stagflationary economic scenario. “It’s not like one particular sector has had a lot of defaults,” said Moody’s Sharon Ou, “Instead it’s quite a number of defaults in different industries. It depends on leverage and liquidity.” The default problem has not received a lot of media attention.
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