US Bankruptcy Dashboard – March, 2020

Q1 2020 Chapter 11 bankruptcy filings in the US were at par with the trend seen in 2019. That said, almost all leading indicators are currently suggesting Q2 and Q3 could see a major spike. Some of the most vulnerable sectors are retail, consumer discretionary, wholesale traders & manufacturers as well as energy.

A massive government intervention will be required to limit the spike and avoid the peaks last seen post the dotcom and 2008 crises. Finally, we also believe the current situation will likely activate a major chunk of the existing private distressed debt fund dry powder, as investors begin to aggressively evaluate opportunities.