Across the wider corporate landscape, bankruptcies have begun to tick higher.
As Visual Capitalist's Dorothy Neufeld and Sabrina Fortin show in the graphic below, based on data from S&P Global, corporate bankruptcies in 2023 are surging.... U.S. Corporate Bankruptcies Grow.
Corporate bankruptcies are rising at the fastest pace since 2010, and are double the level seen this time last year.
These additional costs, combined with higher wages, energy, and materials, among others, mean that companies may be under greater pressure to cut costs, restructure their debt, or in the worst case, fold.
Secondly, the structure of corporate debt is much different than before the global financial crash.
Today, roughly 72% of rated U.S. corporate debt has fixed rates.
The bad news is that corporate debt swelled during the pandemic, and eventually this debt will come due likely at much higher costs and with more severe consequences.
https://www.zerohedge.com/markets/us-corporate-bankruptcies-are-rise
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