The Future of Zombies in the US

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The negativity of having zombies outweighs the positivity of perhaps providing employment for workers and strategic industries, he says. "There's only two places you can go, heaven or hell" in high-yield bond market: Hell is buying distressed bonds with a very high yield that goes back to par and pays off at maturity. In U.S., about 10 to 15 percent of zombie firms actually thought getting profitable enough to cover their interest would make them more viable than bankruptcy.

In this week’s Primary View podcast, Dr. Edward Altman, the legendary bankruptcy expert, discusses the outlook for debt-saddled zombie companies with Reorg reporter Gaurav Sharma. The New York University professor, best known for the Z-Score formula, cautions that bankruptcy cases are likely to increase in 2024-25, even if the U.S. avoids a recession. If you are not a Reorg subscriber, request access here: go.reorg-research.com/Podcast-Trial We're looking for feedback to improve the podcast experience! Please share your thoughts here: www.research.net/r/Reorg_podcast_survey For more information on our latest events and webinars: reorg.com/resources/events-and-webinars/ Sign up to our weekly newsletter Reorg on the Record: reorg.com/resources/reorg-on-the-record/ #leveragedfinance #highyield #restructuring #performingcredit #distresseddebt #debtrestructuring #leveragedloans