The Rise of Zombie Companies: Prevalence, Factors, and Impact

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This chapter analyzes the prevalence of zombie companies in the largest economies from 1990 to 2021, discussing the definition and indicators used to identify them. It explores the importance of economic and legal factors, company size, economic cycles, and the growth of corporate debt in creating and sustaining zombie firms. Additionally, it examines the relationship between the high yield bond and leverage loan markets and the increasing number of zombie companies.

Renowned bankruptcy guru and NYU Professor Ed Altman and esteemed Queens University finance professor Wei Wang discuss with Reorg’s Gaurav Sharma their research on the worldwide surge in zombie companies. Ed and Wei discuss the various factors behind the phenomenon, including lenient monetary policies, and the development of global corporate bond markets. And, as always, we bring you our weekly summary of interesting developments in the restructuring world as well as a preview of what’s on the docket for next week. 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