⚠️CHART OF THE WEEK: US bankruptcies hit a 15-year high

In Q1, 188 big companies declared a bankruptcy in the US

188 US large companies declared bankruptcy in Q1 2025, the most in 15 years. This is up 35% from 139 recorded last year.

In 2024, big bankruptcies reached 694, the most in 14 years. These are public companies with either assets or liabilities above $2 million or private companies with either assets or liabilities above $10 million.

This is still way below the Great Financial Crisis levels. In other words, the current level of bankruptcies might be associated with a mild recession.

Among sectors, industrials recorded the most bankruptcies last quarter of 32.

This was followed by consumer discretionary and healthcare, at 24 and 13.

As a huge amount of debt matures, companies increasingly struggle to refinance and repay their debt at much higher interest rates than before 2022.

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