On April 20, Bloomberg reported in their weekly “U.S. Bankruptcy Tracker” series that, as of April 16, distressed debt trading was down by almost $1 trillion from March 2020. The publication reached out to finance and restructuring partner Richard Bernard for insight on the trend.
Bankruptcy filings this year “haven’t been prolific,” with many companies filing with less than $100 million in assets and liabilities, said Bernard.
The publication highlighted that while bankruptcy filings are down, that doesn’t mean there isn’t distress still. Bernard explained that potential pockets of stress in manufacturing and the higher education sector could emerge, depending on the lasting disruption from the pandemic.