The rise in the number of business bankruptcies this year, despite little change in default rates for bank loans or speculative-grade debt, seems to reflect the larger number of firms trying to re-finance debt issued when interest rates were much lower. The so-called “maturity wall” is larger next year, which raises the risk that bankruptcies will trend higher despite the fall in interest rates over the course of 2025. That risks volatility in credit markets, but we do not view the maturity wall as a big risk to the economy.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services