comlb
Lieutenant
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Post by comlb on May 16, 2023 21:42:54 GMT
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Deleted
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Post by Deleted on May 16, 2023 22:34:07 GMT
I did not read the article.
But I guess that the companies that are going to go bankrupt would have gone bankrupt anyway.
If there was any impact from Fed raising rates, it is just that it made it sooner which is probably good for everyone involved.
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comlb
Lieutenant
Posts: 67
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Post by comlb on May 16, 2023 22:35:02 GMT
you can always read the article to learn more
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Post by retiredat48 on May 16, 2023 22:57:29 GMT
MY understanding is thaT BY Mondays end, 12 companies had declared bankruptcy.
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Deleted
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Post by Deleted on May 16, 2023 23:51:44 GMT
We should be able to extrapolate that to figure how many bankruptcies by the end of this week.
Any maths people here?
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Post by steelpony10 on May 17, 2023 1:10:00 GMT
Financial Darwinism is good for the herd of amateur investors. I wish it worked in politics.
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Post by roi2020 on May 17, 2023 4:48:42 GMT
As we experience the effects of credit tightening, we'll see more zombie companies bite the dust.
These unprofitable companies will not be able to refinance their debt or withstand the current interest rate environment.
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Post by mnfish on May 17, 2023 10:27:22 GMT
From a post in the Bond Brigade forum - There will be many more to come
Mar 7, 2023 at 6:29am Post by mnfish on Mar 7, 2023 at 6:29am
Interesting note from Wells on why HY bonds have not yet seen the much-anticipated stress due to rising rates. Mostly due to the lack of near-term debt maturities. In 2023, only $60B will mature, 2024 is $114B and by 2025 that grows to $212B. Most companies try to refinance 12-18 mos prior to maturity so expect some stress to show up soon. BB rated will refinance at the highest rates in over a decade and B rated and lower may struggle to find rates that are affordable at all
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