I’ve often mentioned that bankruptcy filings usually peak some 18 months after a recession ends. Government support and payment deferrals have delayed bankruptcies flowing from the COVID-19 triggered depression, but the deadwood is building all the same.
The go-to maneuver has been to keep raising capital at rock bottom yields from risk-indiscriminate lenders and investors. The chart on the lower left shows the record debt issuance sold in March and the one beside the record equity offerings sold to the public, year to date. Needless to say, capital risk has not been appropriately discounted.
This segment is a worthwhile update. Here is a direct video link.
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