Many fret that capital is being routed to businesses that will underinvest in growth for years, even if they recover enough to fully pay the interest on their debt.
Q2/2020 saw the steepest economic decline on record. Whether Q3 reflects a recovery will depend, in large part, on whether the country can reverse the course of Covid-19.
Professor whose formula predicts corporate bankruptcies warns that growing debt during the Covid crisis might lead to unprecedented spate of bankruptcies.
