Risky Trends: Retail Industry Tumbles as Bankruptcies Pile Up

By Luis Miguel Tejada

With the global economy still reeling from the adverse effects of inflation and increasing borrowing costs, some industries have seen an increase in bankruptcies over the last few months. This increasing bankruptcy trend is evidenced by the growing average spreads of Credit Default Swaps (CDS) and is most notable in the Retail Industry (as shown in Figure 1).