Corporate bankruptcy surge signals trouble for the U.S. economy

U.S. corporate bankruptcies have risen to levels not seen since 2010.

Transcript

00:00Anytime you see bankruptcy numbers going up, what we essentially are seeing the impact of

00:07is that you have companies with cash crunches. And that is often tied to debt payments and

00:16interest rate, debt payments coming due and interest rates being too high so that you can't

00:21easily refinance. So I think that what we're seeing is really tough times coming for companies

00:29that are heavily indebted. And that is not a good position to be. I think anyone who is highly

00:38leveraged right now is going to have a hard time kind of staying alive in the foreseeable future,

00:44as long as interest rates are higher than what we've had in that zero interest rate environment

00:49that I think a lot of investors were too comfortable with.