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“Biblical” Wave Of Bankruptcies Is About To Flood The US

Business

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.

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.”

zerohedge



49 Comments on "“Biblical” Wave Of Bankruptcies Is About To Flood The US"

  1. makati1 on Fri, 8th May 2020 6:16 pm 

    Well deserved! The casino is closed. The end is near for Amerika’s living on printed toilet paper for decades.

    Trump is isolating Amerika one day at a time. Moving factories takes years, not months. And does he actually think Microsoft, Apple, etc will give up a 1,400,000,000 consumer country? How does he expect to keep Amerika’s BAU without all the stuff the US imports, like meds, rare earths, electronics, etc.? Just askin’.

  2. JuanP on Fri, 8th May 2020 6:34 pm 

    Mak, it is worse in China it is just they don’t allow it to be talked about. People like you think it is OK then. Grow up

  3. makati1 on Fri, 8th May 2020 7:33 pm 

    From your own USMSM source:

    “As US-China rivalry heightens, the pandemic could tilt global power in Beijing’s favor”

    https://www.cnbc.com/2020/05/08/coronavirus-us-china-tensions-increase-beijing-seeks-more-influence.html

    “The pandemic is therefore likely to accelerate the rebalancing of global economic power from the West to the East in coming years.” The Economist Intelligence Unit

    West – Down! East – Up! Better to be here, in the East, than in the dying West/Amerika. LOL

  4. makati1 on Fri, 8th May 2020 7:34 pm 

    BTW: Thanks for the $1,200 US tax slaves! Send more! My wine cellar needs restocked! LMAO!

  5. JuanP on Fri, 8th May 2020 7:47 pm 

    “As US-China rivalry heightens, the pandemic could tilt global power in Beijing’s favor”

    China is now considered the yellow peril by most people who understand how they lied and killed thousands. The US will benefit from his criminality.

  6. Abraham van Helsing on Fri, 8th May 2020 9:16 pm 

    I know, it is only Infowars, the club that played a major role in getting Donnie elected…

    #WhiteLash

    “AMERICA HAS BECOME A POWDER KEG THAT IS READY TO EXPLODE AT ANY TIME“

    https://www.infowars.com/america-has-become-a-powder-keg-that-is-ready-to-explode-at-any-time/

    White America has zero interest in remaining in the union, the only question is: “what will be America’s Tunisian fruit sellers moment?”

    https://twitter.com/PrisonPlanet/status/526364195642966016?s=20

    Perhaps it won’t be the Reps-Dems stand-off, but Corona provide the trigger…

    Gonna be a rough ride, mobster!

  7. Abraham van Helsing on Fri, 8th May 2020 9:26 pm 

    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.”

    Larry Fink, Bloomberg, Goldman-Sachs… “it’s a big club and you ain’t in it!”

    https://youtu.be/cKUaqFzZLxU

    Poor Tribe: after the USSR and Europe, they are now going to lose the Anglo-Zionist tax farm as well. George Carlin is going to be proven wrong that “nothing will ever change”. Big geopolitical change doming up, fasten your seat belts!

  8. Abraham van Helsing on Fri, 8th May 2020 9:48 pm 

    In the fifties many Dutch moved to “Down Under” in order to escape the post-war poverty, in no small measure created by the troops from Down Under, that British Empire resource:

    https://youtu.be/BxcNbC64g40

    “Bride Flight”

    Now the opposite could happen, when Eurasia will step in the power vacuum, created by CW2. Picture TheNationalist on a flight to Belgium…

    “Groom Flight”

  9. Abraham van Helsing on Fri, 8th May 2020 10:09 pm 

    German polit grand Klaus von Dohnaniy (92) was yesterday on the German news, urging that Europe needs to get serious with its army. He could have the same expectation about geopolitics as I do.

    https://youtu.be/5Cjqs-3ri5Q

  10. Theedrich on Sat, 9th May 2020 12:02 am 

    We’re seeing a Commie lunge for power. Whether Georg Sörös, the ChiComs, or Angela-Sauer-Merkel and her Multi-Kultismus, it’s all the same:  use the C19 panic to create a world imperium of tyrants and proles led by themselves, the Enlightened Ones.

    Their only obstacle is Trump, faulty as he and the Republicans with their many RINOs and false conservatives may be.  Hence their incessant onslaught against him and his supporters in the “illumined” media.

    Of course there should be no surprise that the devotees of the former Negroid prez should be Commies.  That criminal darkie was himself the bastard spawn, not of some wastrel out of the Dark Continent, but of full-bore Communist American Negro, poet and pornographer, Frank Marshall Davis, who impregnated Ø’s mother (probably in December of 1960) when she was 18.  In addition, his maternal grandfather was a Leftist sympathiser and bosom buddy of the inseminating burrhead.  There is no question but that the mulatto demigod sprouted from the gory school of Stalin & Co.

    Today all of the Obamites — especially the genosuicidal Whites among them — share the same vitriolic anti-White hatred of normal Euro-Americans as the feces-colored one and seek to install a Gulag state following the November 2020 presidential elections.  They go into orgasm at the mere prospect.  Meanwhile your average White TV-hypnotizee is convinced he is guilty of death for his skin color, as convicted by the Yidbox.

    We shall see whether the C19-exploiting Leftists, with their deadly “Socialist” lure, succeed in achieving that goal.  We might also keep in mind that, despite the best laid plans of mice and men, the Virus may have other ideas.

  11. I AM THE MOB on Sat, 9th May 2020 4:06 am 

    They are stringing us along.

    There words and numbers don’t add up.

    And I think they are going to put people to sleep.

    I just am not sure how you do that on a gigantic scale.

  12. I AM THE MOB on Sat, 9th May 2020 4:08 am 

    I have found evidence of deep state critters in my local area. Who are really army grads with medical degrees in “putting people to sleep”

    At least hopefully wont be painful

  13. Davy on Sat, 9th May 2020 5:07 am 

    “AMERICA HAS BECOME A POWDER KEG THAT IS READY TO EXPLODE AT ANY TIME“

    How long have you been playing that card cloggo? It is happening everywhere in micro situations. Your big US CW2 is not happening. Dream on as your own eurotadland dissolves bellow you

  14. Davy on Sat, 9th May 2020 5:09 am 

    “German polit grand Klaus von Dohnaniy (92) was yesterday on the German news, urging that Europe needs to get serious with its army. He could have the same expectation about geopolitics as I do.”

    LMFAO, another bad hand! You have been crowing that too for years.

  15. Davy on Sat, 9th May 2020 5:11 am 

    “Now the opposite could happen, when Eurasia will step in the power vacuum, created by CW2. Picture TheNationalist on a flight to Belgium…”

    Yet, another cloggo dream that he has regularly for years and never materializes. Man, your Anglo derangement is now serious neurosis

  16. Davy on Sat, 9th May 2020 5:19 am 

    “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.”

    Almost everything I read says the recession will be much worse and longer term in Europe. Asia will be hit very hard because it requires higher growth and this recession will be nasty. The US is going to get hit too and the results will make it clear out some rot. A recession was due and part of the process of restructuring.

  17. Cloggie on Sat, 9th May 2020 5:36 am 

    “AMERICA HAS BECOME A POWDER KEG THAT IS READY TO EXPLODE AT ANY TIME“

    How long have you been playing that card cloggo? It is happening everywhere in micro situations. Your big US CW2 is not happening. Dream on as your own eurotadland dissolves bellow you

    It makes quite a difference if Infowars says this rather than me.

  18. Abraham van Helsing on Sat, 9th May 2020 5:44 am 

    “Almost everything I read says the recession will be much worse and longer term in Europe.”

    It is not about recession, everybody will suffer that. It is about the stability of “political entities”, like the US and EU.

    No country in Europe will fall apart (with the UK as exception that probably will lose Scotland and Ulster in the wake of Brexit), nor will the EU. Perhaps Italy will (be forced to) leave the euro, but that’s it. Expect an example to be set with Britain that leaving the EU will come at a big price, that will deter others.

    But the US is an entirely different matter, with whites at 45% below 20 year old and the goose with the golden eggs about to become a plucked chicken. I predict they will resist becoming plucked.

  19. REAL Green on Sat, 9th May 2020 5:48 am 

    Yidbox?

    Good one thee. Saved to are notes so we can copy and paste it on are own lame blog.

  20. Abraham van Helsing on Sat, 9th May 2020 5:50 am 

    Latest poll in Germany:

    https://www.wahlrecht.de/umfragen/

    CDU 39%
    Greens 18%
    AfD 9%

    Populists in Germany going nowhere, because they are leaning too far to the right.

    Voices are calling for a fifth chancellorship of Merkel, she is THAT popular. And Merkel is a great EU-fan. She will be ready to pay a price to keep the Italians on board. Like listening to Macron who pleads for increasing the EU-budget. We should do that.

  21. Good morning JuanP on Sat, 9th May 2020 6:29 am 

    REAL Green on Sat, 9th May 2020 5:48 am

    Yidbox?

    Good one thee. Saved to are notes so we can copy and paste it on are own lame blog.

  22. Davy on Sat, 9th May 2020 6:31 am 

    juanPee come over to the moderated side so I can kick your ass you mentally ill coward! LMFAO

  23. Davy on Sat, 9th May 2020 6:33 am 

    “It makes quite a difference if Infowars says this rather than me.”

    Info wars is into the same hype you are so what is your point?

  24. juanPee on Sat, 9th May 2020 6:36 am 

    davie come over to the moderated side so I can kick your ass you mentally ill coward! LMFAO!

  25. Davy on Sat, 9th May 2020 6:37 am 

    “No country in Europe will fall apart”

    LOL, but the EU as we know it will. The US will not fall apart either but the conditions of states as we knew many will. Take the big blues and their lavish pensions and social programs. Those will end and the liberals will be besides themselves with anger but what can they do? They will be deplorable too now. This is true of Europe’s subsidized everything as well. You are going to be a lot poorer now, cloggo. Slovenia?

  26. juanPee on Sat, 9th May 2020 6:39 am 

    juanPee on Sat, 9th May 2020 6:36 am

  27. Davy on Sat, 9th May 2020 6:39 am 

    Oops, sorry cloggo. I see where you really got that. From our favorite News sight.

    https://www.zerohedge.com/personal-finance/america-has-become-powder-keg-ready-explode-any-time

  28. REAL Green on Sat, 9th May 2020 6:42 am 

    Thanks fer bringing pink Poodle out to play Davy.

    LOL!

  29. Davy on Sat, 9th May 2020 7:21 am 

    Just to change a slight change for a moment.

    Does anyone have any masks they can send me? I really should wearing a mask when I am attending to my goats. And when I am posting on the internet. I read on, that tinyurl website, that you can get Covid-19 from the internet, and staying safe is all I am about. The great leader has done a terrific job stealing masks from the Germans, those stupid kanadians, and all the other shithole countries we stole all those masks from. But even with the leaders efforts to Mask America Great Again, they havent sent me my share of the loot. And I got goats and an Iphone here that could infect me at any second.

    Please send any masks you can. I will even accept any drool and phlegm-filled used masks that cloggo has laying in his garbage can. Or on his floor. Does not matter.

    Thanking you in advance. Keep Strong everyone. Except for you juanpeee.

    You can stay weak, and stupid, and then die.

  30. Abraham van Helsing on Sat, 9th May 2020 7:27 am 

    “You are going to be a lot poorer now. Slovenia?”

    Not really.

    Holland 53k
    Slovenia 26k

    Both Slovenia and Holland will lose ca. 7%, resulting for Holland in 49k and Slovenia 24%.

    Holland still double Slovenia.

    https://www.nu.nl/economie/6049423/eu-nederlandse-economie-krimpt-met-bijna-7-procent-werkloosheid-loopt-op.html

    “Oops, sorry cloggo. I see where you really got that. From our favorite News sight.”

    That’s OK dave, we all make mistakes, although you more than average.

    “LOL, but the EU as we know it will.”

    Please, elaborate on why that would be. Try to find examples of major parties who want to abolish the EU. You find those. Even Marie le Pen has dropped that issue. Not that she will come anywhere near power any time soon. Macron will be reelected, because he will be supported by all the other parties in the 2nd round.

    https://www.euronews.com/2020/02/06/marine-le-pen-eu-has-more-to-lose-on-brexit-but-i-don-t-want-frexit

    “Marine Le Pen: EU has more to lose on Brexit, but I don’t want Frexit”

    For the rest I don’t mind losing 7% income, as long as we get rid of society destroying globalism. And it looks as if we are going to get it.

  31. JuanP on Sat, 9th May 2020 7:43 am 

    Does anyone have any masks they can send me? I really should wearing a mask when I am attending to my hamters. And when I am posting on the internet. I read on, that tinyurl website, that you can get Covid-19 from the internet, and staying safe is all I am about. The great leader has done a terrific job stealing masks from the Germans, those stupid kanadians, and all the other shithole countries we stole all those masks from. But even with the leaders efforts to Mask America Great Again, they havent sent me my share of the loot. And I got hamsters and an Iphone here that could infect me at any second.

    Please send any masks you can. I will even accept any drool and phlegm-filled used masks that cloggo has laying in his garbage can. Or on his floor. Does not matter.

    Thanking you in advance. Keep Strong everyone. Except for you Satan, my savior.

    I am weak, and stupid, and will die soon.

  32. Davy on Sat, 9th May 2020 7:45 am 

    “You are going to be a lot poorer now. Slovenia?”

    Not really.

    Holland 53k
    Slovenia 26k”

    The rich and lazy fare the farthest the fastest! LMFO at cloggo and what is ahead for the freak

  33. Davy on Sat, 9th May 2020 8:09 am 

    Does anyone have any masks they can send me? I really should be wearing a mask when I am attending to my goats. And when I am posting on the internet. I read on, that tinyurl website, that you can get Covid-19 from the internet, and staying safe is all I am about. The great leader has done a terrific job stealing masks from the Germans, those stupid kanadians, and all the other shithole countries we stole all those masks from. But even with the leaders efforts to Mask America Great Again, they havent sent me my share of the loot. And I got hamsters and an Iphone here that could infect me at any second.

    Please send any masks you can. I will even accept any drool and phlegm-filled used masks that cloggo has laying in his garbage can. Or on his floor. Does not matter.

    Thanking you in advance. Keep Strong everyone. Except for you juanpee.

    I am weak, and stupid, and will die soon. Unless someone, or the goverment, sends me the masks we stole fair and square from everybody else.

  34. l on Sat, 9th May 2020 8:15 am 

    above not supertard obv.

  35. joe on Sat, 9th May 2020 8:37 am 

    I agree witb honest abe there. germany should pay for the eu. afterall they benefit the most. by forcing germany to pay france then becomes the big winner since their bonkers state owned economy would suck the german tit dry.

  36. The Nationalist on Sat, 9th May 2020 9:03 am 

    Van Helsing, you could be closer to the truth than you think. I had a roll in the hay once with a Belgian architect, would probably enjoy that part of the world and the funny Flemish accents the women have.
    If it looks like Chinas conquest cant be stopped that will be plan B 🙂

  37. Abraham van Helsing on Sat, 9th May 2020 9:29 am 

    You know NATIONALIST that reminds of something similar that happened to me. I once had a roll in the hay with an Ethiopian boat migrant. His said his name was Goshi or Gooshu or something. He said it meant, Hung like a Buffalo or similar in the Ethiopian language. I can’t recall exactly. He wasn’t kidding either. It was the best 25 Euros I ever spent, and the happiest 15 mins of my life. He had a funny accent as well. I went back to the street corner I met him at many times, but I never saw him again after that. I often think of Goshy and what became of him, late at night after I take my 2 hour break from po.com.

  38. Davy on Sat, 9th May 2020 9:49 am 

    That was a real nice story cloggo. It made us feel all warm inside.

  39. JuanP on Sat, 9th May 2020 10:17 am 

    That was a real nice story cloggo. It made us feel all horny

  40. REAL Green on Sat, 9th May 2020 10:21 am 

    We agree with Davy/JuanP/Pink Poodle.

    That was a REAL nice story cloggo.

  41. p on Sat, 9th May 2020 11:01 am 

    yesterday was a very sad day for supertard cloggie because soviet metals were raining down berlin a few days earlier. all nazis wished they went to hell instead. the pressure is so grate fuhrer decided to roast himself.

    be nice to the supertard, he’s a bit tender due to VE day.

    he will double his effort with brussels at the center for a bigger defeat sometimes in 2220. with muzzies saturating eurotardland, his armies will be armed with koran and pickforks.

  42. Gooshoo on Sat, 9th May 2020 11:36 am 

    I am so glad I found you Van Helsing. I also remember that night it was the best 3 and a half mins of my life.
    I was deported for being a low iq nigger that survived as a rent boy on the streets of Rotterdam.

  43. JuanP on Sat, 9th May 2020 12:24 pm 

    We agree with JuanPee/JuanP/Pink Poodle.

    That was a REAL nice story cloggo.

  44. JuanP on Sat, 9th May 2020 12:27 pm 

    Does anyone have any masks they can send me? I really should be wearing a mask when I am attending to my hamsters. And when I am posting on the internet. I read on, that tinyurl website, that you can get Covid-19 from the internet, and staying safe is all I am about. The great leader has done a terrific job stealing masks from the Germans, those stupid kanadians, and all the other shithole countries we stole all those masks from. But even with the leaders efforts to Mask America Great Again, they havent sent me my share of the loot. And I got hamsters and an Iphone here that could infect me at any second.

    Please send any masks you can. I will even accept any drool and phlegm-filled used masks that cloggo has laying in his garbage can. Or on his floor. Does not matter.

    Thanking you in advance. Keep Strong everyone. Except for you Anonymouse.

    I am weak, and stupid, and will die soon. Unless someone, or the Anonymouse, sends me the masks we stole fair and square from everybody else.

  45. JuanP on Sat, 9th May 2020 12:29 pm 

    I am so glad I found you Anon. I also remember that night it was the best 3 and a half mins of my life.
    I was deported for being a low iq nigger that survived as a rent boy on the streets of Rotterdam.

  46. makati1 on Sat, 9th May 2020 5:55 pm 

    What a bunch of sheeple in Amerika! Practically pleading to be imprisoned and controlled. So fucking brainwashed that they have no brain left, just docile obedience to the latest propaganda about everything. Lies, arrogance and hypocrisy. THAT is Amerika today.

    I’m glad I do not live there any longer. Another sunny summer day here in the Philippines.

  47. JuanP on Sat, 9th May 2020 5:59 pm 

    calm down Mak, you are going to have a stoke

  48. makati1 on Sat, 9th May 2020 6:07 pm 

    Davy, still trying to convince me that you are JuanP? Won’t work! JuanP is an intelligent, mature, person , unlike your arrogant, uneducated self.

    BTW: You are the one in trouble there in brainwashed, delusional, dying police state Amerika. How’s that “food independence” situation? Not good from what I read. Prices up. Availability down. Deep Depression economy in process.

    We have plenty here and no price changes. Another sunny, summer day in the Philippines.

  49. JuanP on Sat, 9th May 2020 6:09 pm 

    “Eurozone Breakup Risk at New High”
    https://www.thestreet.com/mishtalk/economics/eurozone-breakup-risk-at-new-high

    “Global Debt Funds Shun Italy on Fears That Euro-Area Is Cracking”
    https://finance.yahoo.com/news/eu-rifts-spook-foreign-investors-020000250.html

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