Q4 Report Shows Majority of Defaults Occurred in Energy Sector

The U.S. economy went through considerable improvements in Q4 2020, after the devastating effects of the pandemic left an uncertain outlook. Only 19 major companies defaulted in Q4, a significant decrease in comparison to the 34 companies in Q3.

Additionally, five companies filed for Chapter 11 bankruptcy protection in Q4 2020. 

The Buttonwood Tree defines a default rating as an issuer credit rating of D or SD from S&P or Moody’s.

The Energy sector experienced the majority of turmoil in Q4.

Source: The Buttonwood Tree

The Consumer Discretionary sector, which previous led in defaults, took a surprising turn in Q4 2020. The sector made up only 11%, or two companies, of the total default industry.

Jill Acquisition LLC and Cineworld Group PLC were the two defaults wit...

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