More companies are failing as the Fed's war on inflation weighs on businesses

Bankruptcies rose 17% in August, the 13th straight monthly increase.
Data suggests businesses are struggling with the Fed's interest rate hikes.
Higher rates make it more expensive for companies to borrow money.
"Shark Tank" star Kevin O'Leary warns of a "crisis" in small business financing.
Retailer Bed Bath & Beyond, Silicon Valley Bank, and Vice filed for bankruptcy this year.

businessinsider.com

Relevant topic timeline:

8/21/2023

Visualized: U.S. Corporate Bankruptcies On the Rise

The number of corporate bankruptcies in the US is increasing at the fastest pace since 2010, with over 400 corporations going under so far in 2023, reflecting overstretched balance sheets and rising interest rates.

9/7/2023

Banks Are Resilient, but FDIC Says Inflation and Higher Interest Rates Pose Risks

The US banking industry is experiencing signs of stress, with second-quarter earnings dropping 11.3% due to bank failures, while declining interest rates and rising costs pose challenges for profitability, according to the Federal Deposit Insurance Corp.

9/8/2023

Surge in Small Business Bankruptcies Hints at Economic Troubles Ahead Despite Upbeat Data

Rising U.S. business bankruptcies are causing concern despite strong economic indicators, potentially impacting the overall economy and smaller firms in particular.

9/15/2023

US Corporate Debt Defaults Surge 176% in 2023 as High Interest Rates Push More Businesses into Distress

US companies have experienced a 176% increase in debt defaults in the first eight months of 2023 compared to the same period in 2022, with high interest rates pushing businesses into financial distress, particularly in the media and entertainment sector.

9/17/2023

Bankruptcy Filings Rise but Remain Below Pre-Pandemic Levels as Economy Resets

Commercial bankruptcy filings are on the rise, with big-name companies such as Bed Bath & Beyond, Silicon Valley Bank, and Party City all folding, reflecting the challenges posed by the end of pandemic funds, sticky inflation, a slower global economy, and a sharp increase in the cost of capital. However, while bankruptcy rates are growing, they remain significantly lower than previous recessions, and the economy is still growing, providing opportunities for displaced workers to find re-employment.

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Posted 9/7/2023, 7:49:00 AM