A wave of bankruptcies is hitting nearly every corner of the economy, leading to this 'unusual' pattern

"Bankruptcies seem to be kind of all over the place,"

"Rising costs, tighter credit conditions, and ongoing geopolitical volatility continue to exert pressure on households and businesses already facing financial strain,"

"That was a sticky event - a lot in the industry kind of went through bankruptcy at the same time,"

"What we have now, which is the thing that I find kind of interesting, is I don't see as much stickiness as I'm used to seeing."

Bankruptcies are rising nationwide, encompassing billion-dollar corporations, mom-and-pop shops, and individual filers. Large corporate bankruptcies have reached their highest level in 15 years. The surge reflects growing financial pressures as costs climb and borrowing becomes more difficult. Amy Quackenboss said rising costs, tighter credit conditions, and ongoing geopolitical volatility continue to exert pressure on households and businesses already facing financial strain. Unlike past downturns, failures are spreading across many sectors rather than clustering in specific industries. Robert Stark noted that past bankruptcies tended to be industry sticky, citing the 2022 crypto winter and FTX, but current patterns show less sector concentration.

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