Corporate Red Flags to Pink Slips
Corporate Downgrades Foreshadow the Layoffs
Note: This newsletter contains information for educational purposes only, and the content below should not be considered financial advice to readers. We published a brand new short recommendation for our clients. If you would like to become our client, email laks@unicusresearch.com
We have the highest weekly corporate default since May 2023.
Corporate downgrades outnumbered upgrades for the fourth consecutive week.1
You can access last week’s analysis here: The Dark Side of the US Speculative-Grade Defaults. Downgrades were overwhelmingly on issuers rated speculative grade, including one fallen angel from the media and entertainment sector, Warner Bros. Discovery Inc.
Among the sectors, consumer products saw the most pronounced credit deterioration last week: It led to four downgrades, two risky credit additions, and one default, U.S. beverage manufacturer Naked Juice LLC.
Seven defaults occurred last week—the highest weekly count since May 2023—five of which were due to missed payments.
Breaking down the Data, & Tracking the Current Corporate Red Flags
From red flags to pink slips, the credit cracks foretold a year of mass closures and corporate fallout. The next wave of layoffs is here.