From the world's largest credit insurer, Allianz, Euler Hermesa is telling us that a record number of companies will go bankrupt in 2009. Specifically, Allianz expects 200,000 insolvencies to occur in Europe while 'an explosion' of failed businesses will plague the US. What does this mean?According to HSBC, corporate debt spreads are now implying cumulative default rates of 30 per cent for investment grade companies, as compared to 20 per cent during the Great Depression.Got that? The percentage of businesses expected to file for bankruptcy in the United States during 2009 will surpass anything we saw during the Great Depression. Nope, this is not good ...
- Mark
No comments:
Post a Comment