Riptide: The New Era of Acute Financial and Operational Stress in the U.S. Middle Market (White Paper)
Key Takeaways:
- U.S. middle market companies are in crisis facing collapsing margins, surging leverage, and deteriorating solvency due to high inflation and soaring interest rates – threatening to unleash a wave of corporate restructurings.
- This risk contrasts sharply with the widely reported performance of large public companies who have the tools, resources, and flexibility to respond to today’s difficult economic environment.
- Analysis of previously unavailable financial data on middle market companies provided by RapidRatings, a leader in supply chain risk analytics, reveals the sharp deterioration in performance and stark divergence from public companies.
- This period of distress will create an attractive investment opportunity in middle market credit that is immediate, long lasting and characterized by the need to reorganize both the capital structures and operations of borrowers.