COVID-19 pandemic triggers default wave as U.S. corporate bankruptcies hit 11-year high

It was a rough 2020 for the business community?

It will take years to understand the impact that the government’s hysterical response to the coronavirus was on the economy and the private sector.

But we are beginning to get some compelling data that will scratch the surface.

According to data compiled by Bloomberg, there were 244 bankruptcy filings in 2020, the highest level since 2009, when 293 U.S. companies filed Chapter 11. The hardest-hit sectors? Consumer services, energy, and retail.

Here is a chart:

And 2021 could be a continuation of 2020 when it comes to bankruptcy because several major companies have billions in distressed debt, led by AMC Entertainment Holdings ($4.5 billion) and Transocean ($4 billion).

Thanks, government.