Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By John Rolls (Reporter)
Contributor profile | More stories
Story Views
Now:
Last Hour:
Last 24 Hours:
Total:

"Biblical" Wave Of Bankruptcies Is About To Flood The US

% of readers think this story is Fact. Add your two cents.


By Tyler Durden / ZeroHedge

One of the silver linings of the coronacrisis to date is that despite the unprecedented collapse in the broader economy and the 30 or so million unemployed, the pace of bankruptcy filings has been relatively steady compared to the pre-covid levels, as the following Goldman chart shows.

Unfortunately the relative calm is not meant to last, because as we observed last month, Moody’s recently expanded its “B3 Negative and lower list” which soared to its highest tally ever — 311 companies. That tops a former peak of 291 companies, reached during the credit crisis of 2009 and the commodity-related downturn in April 2016. At 20.7% of the total rated spec-grade population, the list also shot up above its long-term average of 14.8%, and closing in on its all-time high of 26.1%. This spike is the result of the confluence of a coronavirus outbreak, plunging oil prices, and mounting recessionary conditions, which created severe and extensive credit shocks across many sectors, regions and markets, the effects of which are unprecedented.


***Support BeforeItsNews by trying “IMMUSIST™ Beverage Concentrate, the Clear Choice for Boosting Your Immune System or Other Health Building Products at www.mitocopper.com ***


And it’s not just junk: a record number of investment grade names have been

… or are about to be cut to junk, unleashing the long-awaited flood of fallen angels:

Of course, downgrades first to junk and then to deep junk are just the first step in a painful voyage which ends with bankruptcy.

And while many borrowers are actively pulling levers to preserve cash by cutting payrolls, capex, and dividends, in some cases even these drastic actions are not enough to avoid failures. Indeed, as the latest default tracker from Bank of America shows, there has already been a surge in recently defaulted names and deeply distressed names, with April defaults surging to $17bn while another $27bn in issuers now on the bank’s default watchlist – issuers that are currently in grace period for missed payment, recently initiated distress exchanges, or other actions that could lead to potential default – and finally an additional $25bn in deep distress, whose bonds are currently trading below 50 cents on the dollar and have experienced price plunge by 50% from their maximum price within last 6 months.

Finally, if the following charts from Deutsche Bank’s Torsten Slok is any indication, the wave of Chapter 11 bankruptcies…

… and loan delinquencies…

… that is about to flood the US will be nothing short of biblical.

And none other than the CEO of the world’s biggest asset manager confirmed as much: speaking on a call with clients, Larry Fink who runs the $7.5 trillion Blackrock, said that bankers told him they expect a cascade of bankruptcies to hit the American economy.”

https://www.zerohedge.com/markets/biblical-wave-bankruptcies-about-flood-us

***Support BeforeItsNews by trying “IMMUSIST™ Beverage Concentrate, the Clear Choice for Boosting Your Immune System or Other Health Building Products at www.mitocopper.com ***

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!


Order by Phone at 888-809-8385 or online at https://mitocopper.com

Order by Phone at 888-809-8385 or online at https://www.herbanomic.com


Get our Free Ebook, "Suppressed Health Secrets"  with  Natural Cures THEY don't want you to know!

HuMineral Humic and Fulvic Liquid - Nature's most important supplement! Vivid Dreams again!

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Organic Hemp Extract (CBD) - Full Spectrum high CBD (3300mg) hemp extract eases stiff joints, relieves stress and more!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Immusist Beverage Concentrate - Proprietary blend, formulated to reduce inflammation while hydrating and oxygenating the cells.

Report abuse
Loading...
Loading...

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

MOST RECENT
Load more ...

SignUp

Login

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.