Bankruptcies crossed a new milestone this week. Since May 18, 2020, there have been at least 102 Chapter 11 bankruptcy filings or defaults on loan payments tracked by The Buttonwood Tree.
As the coronavirus pandemic continues to wreak havoc on the U.S. economy, no sector is spared. The Consumer Discretionary sector, however, has taken the brunt of the economic downturn.
Source: The Buttonwood Tree
The Consumer Discretionary sector faces the majority of defaults, representing 50% of the total companies that have filed for Chapter 11 or defaulted on loans. Many of the companies that filed within this sector had accumulated billions in debt prior to the pandemic.
Sources: The Buttonwood Tree, Moody's, S&P
The major bankruptcies include J.C Penny,...