The stressful US companies prepared more debts in April

Written by Shankar Ramkrichnan

(Reuters) -American companies’ restructuring by financially American companies increased by 60 % in April, and data from JPMorgan showed on Tuesday, as companies faced pressure from the high tariffs, inflation and the fluctuation of capital markets.

These operations are called stalled exchanges or responsibility management exercises and occur when re -negotiating companies in distress or restructuring their debts instead of submitting bankruptcy.

In numbers

JPMorgan said that there are $ 3.5 billion exchanges in April compared to $ 2.2 billion in March and $ 1.6 billion in February. The first quarter was 8.4 billion dollars.

JPMorgan said that the size of the bonds traded with revenues exceeding 1,000 basis points on US Treasury bonds increased by $ 18.4 billion in April during the previous month to 94.6 billion dollars. This was a 10 -month high and 7.2 % of unwanted bonds, an increase of 6.6 % in the previous year.

Why is it important

Data reflects the deterioration of the basics that forced companies to search for bankruptcy alternatives.

Main quotes

“The great catalyst for the continuation of LME is optimism that after a period of turmoil, the company’s operations will turn or the events that cause uncertainty in a decision may be. This optimism may be in many cases.”

Ian Feng, the chief analyst of the research company, expected that the pace of these operations will remain fast, “especially if the total economic factors, including commercial wars that wave on the horizon and many hot points of regional instability, continue to arouse chaos through economic markets.”

LMES usually gives companies from two to two years to fix their basic problems.

(Shankar Ramkarishnan’s reports participated in the editorial of Sinthia Ostroman)