Central banks worldwide are suppressing borrowing rates to accommodate credit markets, trying to alleviate financial pressures on corporations. This is creating a surge of "zombie companies," or firms that are staying alive in spite of their inability to service interest expenses.
A supplier network fraying at the edges can eventually break down into a full-blown disruptive crisis. With global debt soaring, daily bankruptcy risk evaluation is a must.
The global effort to slow the spread of COVID-19 continues to impact all economic regions and industries. Risk professionals must adapt quickly or risk being sideswiped by the rise in bankruptcies.
The financial fallout from the most recent holiday season may not provide comfort or joy for Conn’s, Inc., a specialty retailer of furniture, mattresses, home appliances and electronics.
A look at our FRISK® Stress Index shows that there are more than 30 large-scale public companies within the restaurant industry at heightened risk of bankruptcy in 2019.
AutoCanada Inc.'s heavy leverage has put the company in potential danger. As interest rates rise in both Canada and the U.S., expected softer sales and higher costs will make it much harder for the company to remain solvent in 2019.
With concerns surrounding China’s economy and the sharp decline in the Baltic Dry Index, risk professionals should be vigilant in monitoring the changing conditions in the shipping industry.
Certain residential homebuilders are performing adequately, like PulteGroup, Inc., while others like Hovnanian Enterprises, Inc. remain severely exposed to credit risk.
In the steel industry, major players AK Steel Holding Corporation and Steel Dynamics, Inc. are two examples of public companies with markedly different financial situations in 2018.