Ten Years of Corporate Bankruptcy from The Deal

Transactional tracker The Deal magazine has been celebrating its tenth anniversary (hard to believe). As part of that, the magazine has been reviewing how the last ten years have treated different parts of the deal-making scene. Matt Miller has written the bird's eye view of what has happened to corporate bankruptcy over the past ten years. In Miller's diagnosis, easy liquidity led to leverage ratios that were unsustainable, which I think is undisputable. The financial crash dried up liquidity and with more and more companies having a single dominant creditor who could call the shots at the time of financial distress, the result has been more liquidations rather than reorganizations. That all sounds right to me (and, full disclosure, Miller talked to me about the dominant creditor point). Here at Credit Slips, we're into the bird's eye view. The article is worth a read.