COVID to Test Bankruptcy Infrastructure

The COVID pandemic prompted  global economic problems that many predicted would lead to an unprecedented number of corporate bankruptcies. The predictions were wrong, largely because governments responded with extraordinary measures. Congress, for example, pumped trillions of dollars into the U.S. economy in the form of both grants and loans, and the Federal Reserve kept interest rates historically low. Companies received enough money to continue operating despite their lack of cash flow, yet many were left with unprecedentedly large amounts of debt on their balance sheets.

Perhaps a robust economy will allow the companies to grow out of their debt burden. … Read more