US non-performing debt up 29%. But the US credit system is “Robust is stable”…
Quick post in which we try to make you understand what is happening in the US and why the credit system crisis is anything but completely safe.
There is a veritable cascade of insolvencies that have only grown. But bad debts widened by another about $65.9 billion last week, as US bankruptcy courts filed six new, large bankruptcy filings, according to data compiled by Bloomberg.
The accumulation of dollar-denominated bonds and corporate loans in the Americas and trading at non-performing levels rose to $295.4 billion in the week to Friday, up 28.7% from $229.5 billion for the week previous, according to data compiled by Bloomberg.
Source: Bloomberg
Among last week's bankruptcies were the Chapter 11 filings of sports broadcaster Diamond Sports Group and SVB Financial Group, the former parent company of Silicon Valley Bank.
In total, there have been 48 large bankruptcy filings filed this year through March 20, involving at least $50 million in debt. This is the highest figure since 2009, when 88 large cases were recorded as of March 20, according to data compiled by Bloomberg.
Someone has to absorb these failures, between bondholders and lenders. The growth in insolvencies was very rapid and sudden, as you can understand from the graph above, and if it continues we will come to evaluate in practice the truthfulness of the words of the FED governor Powell according to which the American credit system is " Strong and resilient " and the accounts currents are safe. Well, with this insolvency boom, trust me.
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The article US non-performing debt up 29%. But the US credit system is “Robust is stable”… it comes from Scenari Economici .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/debito-in-sofferenza-usa-in-crescita-del-29-pero-il-sistema-creditizio-usa-e-robusto-e-stabile/ on Thu, 23 Mar 2023 17:45:07 +0000.