U.S. | Corporate financial distress in the wake of the Covid-19 pandemic

Summary

Corporate financial distress is a condition experienced by companies under pressure to service their debt due to one or more factors such as overindebtedness, an increase in borrowing costs, challenges rolling over maturing debt due to tighter financial conditions or a decline in revenues.

Key points

• Key points:
• Corporate debt distress indicator
• Simulations and bottom-up forecast
• Round 1: Stochastic earnings
• Round 2: Stochastic interest rates
• Round 3: Stochastic earnings and interest rates

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