Pandemic Debt Feeds Bankruptcy Concerns for Zombie Companies

The video discusses the challenges faced by the bond market due to the pandemic, highlighting the increase in corporate debt and the rise of 'zombie' companies unable to meet interest payments. The Federal Reserve's actions to stabilize markets have led to record-low spreads, prompting companies to take on more debt. The video explores potential solutions for debt repayment, including economic growth, inflation, and restructuring, while noting the uncertainty of these outcomes. It also forecasts default rates on speculative debt and considers the broader economic uncertainty heading into 2021.

In what ways can companies potentially manage their debt moving forward?

What are the forecasts for default rates on speculative debt in the coming year?