U.S. corporate bankruptcies to hit 13-year high amid rate hikes, economic uncertainty

Corporate bankruptcies in the United States are on track to reach a 13-year high, with over 450 companies seeking shelter in bankruptcy court as of August. The Federal Reserve's interest rate hikes and economic uncertainty have taken a toll on the U.S. economy. Epiq Bankruptcy, a provider of U.S. bankruptcy filing data, reported a 17 percent increase in total commercial filings in August compared to July. August marked the 13th consecutive month of year-over-year increases in bankruptcy filings, both individual and commercial. Corporate default rates are also on the rise as inflation remains high, and borrowing costs increase for U.S. corporations. The recent pause in interest rate hikes by the Federal Reserve may provide temporary relief, but analysts warn that rate increases are likely to resume in an effort to combat inflation.