U.S. companies filed for bankruptcy at the highest rate in 15 years, with 188 filings recorded in CY Q1 2025

  • U.S. companies filed for bankruptcy at the highest rate in 15 years, with 188 filings recorded in CY Q1 2025

S&P Global wrote that as a large amount of debt matures, companies now need to refinance at higher interest rates than when they issued the debt, posing ongoing challenges for many firms, especially those with weaker balance sheets.

The report pointed out that for companies with non-investment-grade ratings, financial metrics based on Market Intelligence data indicate that they are grappling with rising debt pressures, and their ability to pay interest with available cash has also become slightly insufficient.

In Q1 of this year, the industrial sector saw the highest number of bankruptcies at 32, followed by non-essential consumer goods companies with 24. These industries together accounted for nearly 30% of the total bankruptcies in Q1.

However, as the unpopular tariff policies of the Trump administration continue to cause turmoil in financial markets, some industry insiders are now concerned that more companies may face bankruptcy in the face of potential US economic recession risks. Cailian Press previously mentioned that the CDS (credit default swaps) for US high-yield bonds have surged recently, and junk bonds are becoming increasingly precarious.

Boaz Weinstein, founder of Saba Capital Management, recently warned that tariff tensions have accelerated the sell-off of corporate bonds and could trigger a wave of bankruptcies at a faster pace than previous market crises.

"The avalanche has just begun," Weinstein said.

How many companies have filed for bankruptcy so far in 2025?

  • According to the S&P Global Market Intelligence report, corporate bankruptcies hit their highest level since 2010 in the first quarter of 2025.

    From the beginning of January to the end of March, 188 companies filed for bankruptcy.

    That’s up significantly from the 139 filed during the first quarter of 2024 and the highest it’s been since 254 companies filed for bankruptcy in Q1 of 2010 in the wake of the Great Recession financial crisis.


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