Company bankruptcies in the US hit a 13-year excessive final yr as corporations struggled to remain afloat amid excessive rates of interest and rising labor prices.
New information from market intelligence agency S&P World reveals 2023 noticed a complete of 642 chapter filings – the best degree since 2010 when there have been 827 chapter filings.
In keeping with S&P World, California recorded essentially the most filings throughout the nation with 95 corporations searching for chapter safety in 2023, adopted by Texas with 75 and Florida with 68. New York witnessed 58 filings final yr whereas New Jersey documented 31. Different states that had 15 or extra chapter filings embrace Massachusetts, Georgia, Nevada, Illinois, North Carolina and Pennsylvania.
S&P World warns that enterprise circumstances will stay powerful in 2024 as the fee to borrow capital stays excessive.
“Though buyers count on the Federal Reserve to chop rates of interest as early as March, corporations will nonetheless should cope with comparatively excessive rates of interest and sturdy wage development within the close to time period.”
S&P World is just not the one one sounding an alarm over the prospects of the US economic system within the yr forward. In a brand new episode of the Simply Markets Webcast, billionaire “Bond King” Jeffrey Gundlach predicts that 2024 can be a bearish yr for the markets as he expects the economic system to enter a interval of contraction.
“I feel 2024 can be a yr of excessive volatility: beginning with declining charges, then recession, then recession response. DoubleLine is prepared and loaded for bear.”
Gundlach is the founder and CEO of DoubleLine Capital LP, an funding agency with $91 billion in belongings below administration.
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