211 days ago • Posted by Charles-Henry Monchau

Beware of French Zombies
In most developed countries, Covid-19 is having a strong effect on the number of bankruptcies which are actually going down as government intervene to postpone the inevitable. For instance, the average number of bankruptcies (by judgment day) was 4,500 bankruptcies per month. Due to assistance and rule changes they fell to 1,500 recently. But "Zombie" companies that would have failed regardless of the pandemic are piling up. Now that rules are flipping back, we may see a spike in failures in Q4 - source: Charles Schwab, Bloomberg
Number of bankruptcies by judgment date in France