Small businesses throughout the United States are currently filing for bankruptcy at a record pace, exceeding the levels observed in 2020 at the height of the coronavirus pandemic.
According to a UBS Evidence Lab note reviewed by The Epoch Times , the four-week moving average for private filings was 73 percent higher than it was in June 2020. They also warned the situation may worsen as the repercussions of the recent banking crises start to manifest.
“[We] believe one of the more underappreciated signs of distress in U.S. corporate credit is already emanating from the small- and mid-size enterprises sector,” Matthew Mish, head of credit strategy at UBS, wrote in the recently published research memo. “[The] smallest of firms [are] facing the most severe pressure from rising rates, persistent inflation and slowing growth.”
The recent surge in bankruptcies is mainly the result of the Federal Reserve’s monetary tightening, which […]
Read the Whole Article From the Source: redstate.com
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