US faces risk of highest corporate bankruptcies since 2010
Date
9/24/2023 5:46:30 AM
(MENAFN) Guggenheim Investments has warned that corporate bankruptcies in the United States may surge to their highest levels since 2010. This dire prediction is attributed to a combination of factors, including a significant increase in borrowing costs and escalating economic uncertainty. MarketWatch reported on the findings of this report, underlining the potential challenges that lie ahead for the corporate sector in the United States.
The report revealed that the number of corporate bankruptcies in the country had been on a concerning trajectory. By the end of August, over 450 corporations had already sought bankruptcy protection in the current year. This figure has already surpassed the annual totals of the past two years, raising alarm bells within the financial sector.
Guggenheim's analysts offered a bleak assessment of the prospects for a rapid recovery in the US economy. They pointed to the absence of key supporting factors that would indicate a reacceleration of economic growth in the near future. This assessment underscores the prevailing uncertainties and challenges that businesses in the United States are grappling with, which are driving an elevated risk of bankruptcy for a wide range of companies.
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