Davis Polk partner and Restructuring co-head Damian Schaible discussed the recent increase in bankruptcy filings with Bloomberg Law.

Damian predicts that there will be a continued increase in bankruptcy filings in 2023. “From a broader market perspective, it’s pretty simple: We have a market filled with companies with historically high leverage — thanks to the easy money policies of the past decade — and a not-insignificant portion of that debt is floating rate,” he explained.

US Bankruptcy Tracker: Large Filings Surge to Highest Since 2010,” Bloomberg Law (January 31, 2023) (subscription required)