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...