The harsh downturn in several end markets has resulted in overcapacity in key industrial commodity markets, causing base metal prices to break materially lower. We note where bankruptcy is most probable.
J. C. Penney Company, Inc., an American shopping mall icon, has lost in its fight to avoid bankruptcy. In this COVID-19 pandemic, struggling public retailers that have stayed alive by loading up on debt are running out of time.
With economies around the world on the brink of recession, or already in one, any professional monitoring financial risk needs to establish proper oversight now before commercial bankruptcies wreak greater havoc upon their portfolio.
Even with government intervention, trade credit insurance is waning at the exact time when it is needed most. The longer the coronavirus persists, the more bankruptcies will ensue and the harder it will likely become to acquire trade insurance.