Edward Altman

Dr. Edward Altman, a finance expert and creator of the Z-Score bankruptcy model, dives deep into the rising tide of corporate bankruptcies, which has hit levels unseen since the 2008 crisis. He highlights why we're shifting from a benign to a stressed credit phase, touching on the stark differences in defaults between bank loans and high-yield bonds. Altman also discusses distress exchanges as a lifeline for companies and emphasizes the critical role of credit cycles as predictors of economic downturns, urging caution for investors.

Dr. Edward Altman, a renowned financial metrics researcher and creator of the Altman Z-Score, dives into the intriguing world of zombie companies—organizations that persist despite financial distress. He discusses how these firms misallocate resources, impede competition, and contribute to economic stagnation. With examples like Alitalia, Altman highlights the impact of government policies and interest rate subsidies that keep these non-viable entities afloat. The emergence of zombie companies in countries like Australia and Canada further emphasizes the global reach of this troubling trend.

Renowned bankruptcy guru Edward Altman and esteemed finance professor Wei Wang discuss the rise of zombie companies worldwide, exploring factors such as lenient monetary policies and global corporate bond markets. They also analyze the effects of bankruptcy law reforms on zombie firms and explore the negative effects of subsidized credit on resource allocation. In addition, the podcast provides updates on various companies and their financial situations, including Rite Aid, Lumen Technologies, and Sunlight Financial.