Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Stay on top of the latest market trends
Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.
Sports news worthy of your time
Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.
Tech news worthy of your time
Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.
Get the inside stories
Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Want a daily digest of the top Denver news?
Get a daily digest of the most important stories affecting your hometown with Axios Denver
Want a daily digest of the top Des Moines news?
Get a daily digest of the most important stories affecting your hometown with Axios Des Moines
Want a daily digest of the top Twin Cities news?
Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities
Want a daily digest of the top Tampa Bay news?
Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay
Want a daily digest of the top Charlotte news?
Get a daily digest of the most important stories affecting your hometown with Axios Charlotte
U.S. corporate bankruptcies have risen in 2020 — already reaching the highest number at this point in the year since 2010 — but the pace remains well behind what was seen during the Great Recession.
Why it matters: The increased pace of bankruptcies has grabbed headlines in light of the coronavirus pandemic, but is quaint compared to what took place from 2007–2009. In fact, there have been fewer bankruptcies so far in 2020 than in 2006 and in 2005, according to data from S&P Global Market Intelligence.
By the numbers: A total of 470 companies have gone bankrupt as of Sept. 7.
- However, there were 608 bankruptcies through Sept. 7, 2010.
- 1,108 bankruptcies by Sept. 7, 2006.
- 610 bankruptcies by Sept. 7, 2005.
There were 2,747 bankruptcies through Sept. 7 and 4,095 by year-end in 2007; 3,247 through Sept. 7 and 5,268 by year-end in 2008; and 4,025 through Sept. 7 and 4,988 by year-end in 2009.
What to watch: The reduced number of bankruptcies is good for individual companies but is largely a result of the Fed flooding markets with liquidity and keeping U.S. interest rates at extremely low levels.
- That is allowing inefficient companies to stay in business and weighing down overall U.S. productivity, many economists argue.