North -American companies restructured more debt in April

Of Shankar Ramakrishnan

(Reuters) -Restructuring on the part of North -American companies economically increased almost 60% in April, JpMorgan’s data were shown on Tuesday, as companies faced the pressure of increasing rates, inflation and volatility of capital markets.

These operations are called exchanges in problems or exercises for responsibilities and occur when companies in anguish renegocate or restructure their debt instead of presenting failure.

By the numbers

In April, there were exchanges of $ 3.5 billion compared to $ 2.2 billion in March and $ 1.6 billion in February, Jpmorgan said. The total of the first quarter was $ 8.4 billion.

The volume of yields of yields with more than 1,000 basic points on the Treasures in the United States increased an amount of $ 18.4 billion in April during the previous month to $ 94.6 billion, said JpMorgan. It was a maximum of ten months and represented 7.2% of the bin, up to 6.6% a year earlier.

Why is it important

The data reflects the foundations that companies have forced to look for alternatives to bankruptcy.

Key dating

Winnie Cisa, head of the Global Credit Strategy, said: “ A great catalyst for the continuous LME is optimism that after a period of turbulence, a company’s operations will turn around or the events that cause uncertainty can end in a resolution. This optimism could be moved in many cases. ”

Ian Feng, a senior pact analyst of the Covenant Review Research Firm, hoped that the pace of these operations will remain fast “especially if macroeconomic factors that include commercial wars and various regional installation points continue to foster chaos through economic markets.”

Edward Best, co-head of the capital markets of Willkie Farr and Gallagher, said that LMES usually gives companies for a two-year companies to solve their underlying problems.

(Report by Shankar Ramakrishnan; Cynthia Osterman edition)