Tuesday, May 23, 2023

Troubling Chart of the Day: Busy Q1 for US Bankruptcies

While we'd love to join the crowd and call bear-market-over -- and it's certainly not all doom and gloom in the data right here -- we think investors are just a bit too sanguine given underlying trends.

Case in point:

Distress Pile Hits New Multiyear High

By Jeremy Hill

(Bloomberg) -- 

The pile of distressed debt grew by about $16.7 billion last week while US courts closed out their busiest first quarter since 2009, according to data compiled by Bloomberg.

  • The heap of dollar-denominated corporate bonds and loans in the Americas trading at distressed levels rose to $305.3 billion in the week ended Friday, a roughly 5.8% jump from $288.6 billion a week earlier, Bloomberg-compiled data show
    • The growth means the pile of distressed debt is larger than it has been at any time since Aug. 21 of 2020
  • Meanwhile, bankruptcy filings from the likes of Catalina Marketing Corp. and Lincoln Power LLC brought the tally of new, large insolvencies to 57 for the first three months of the year
    • That marks the busiest first quarter for US bankruptcy courts since 2009, which saw 103 filings during the period, according to data compiled by Bloomberg. 

No comments:

Post a Comment