Private Bankruptcy Filings Are Skyrocketing

UBS Says Private Bankruptcy Filings This Year Have Surpassed The Peak Set In The Early Stages Of The Pandemic

Warning signs of a potential credit crunch were flashing even before Silicon Valley Bank’s stunning collapse. United Bank of Switzerland is saying private bankruptcy filings for small businesses in 2023 have already surpassed pandemic levels. 

Financial markets this month were whipped around after the biggest bank failure since the global financial crisis. The failure of Silicon Valley Bank highlighted worries about the impact of tighter credit conditions for American businesses.

So far in 2023, private bankruptcy filings have outstripped a peak set in the early stage of the COVID pandemic by a wide margin. 

Bankruptcy hot spots include the real estate industry. As a result, real estate industry BKs have led this year’s increase in private bankruptcy filings. UBS also warned that the healthcare industry is another industry facing credit stress. These two sectors could impact US labor markets. UBS also raised concerns about the chemicals and retail industries. In addition, the Swiss Bank also raised concerns about the financial sector and restaurant industry.

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