COVID-19-enforced lockdowns devastated the global economy. Defaults in Q3 2020, however, have begun to slow down. At least thirty-four major companies have defaulted on loans or filed for Chapter 11 during Q3 2020.
There were only eight defaults during the month of September. This was a noticeable difference from the month of July, which had 17 defaults. The Consumer Discretionary sector has experienced the majority of these defaults, with the Energy sector following closely behind.
Source: The Buttonwood Tree
For the third financial quarter, there has been a notable increase in defaults within the Energy sector. The Buttonwood Tree reports show that the Energy sector takes up 35.3% of total companies that have defaulted. Every company that has defaulted in the sector...