One Year In: Best Practices for Staying Ahead of the COVID-19 Global Debt Explosion

Ready to learn more?

Public company bankruptcy risk is still rising more than a year after major global economic shutdowns due to COVID-19. The pandemic has greatly impacted global commerce; trade creditors more than ever are – and will likely be continuing to do so for years to come – carefully scrutinizing corporate debt.

Recessions are bad enough, but COVID-19 is complicating the normal story. We have seen a sweeping trend in the lowering of FRISK® scores. Proprietary to CreditRiskMonitor, the FRISK® score is a metric that blends stock market capitalization and volatility, financial ratios (such as the ones leveraged in the Altman Z"-Score model), bond agency ratings from Fitch, Moody's and DBRS Morningstar, and subscriber crowdsourced sentiment data to deliver public company bankruptcy risk prediction that has proven to be 96% accurate.

CreditRiskMonitor’s Vice President of Client Services, Chris Chach, led this hour-long webinar explaining the crisis in working capital that COVID-19 still presents, not only in specific global regions but also in many important multinational industries. Without adhering to some of the best practices developed in the last 12 months by CreditRiskMonitor subscribers, a deeper and more protracted downcycle could quickly hammer underprepared trade creditors. 

Chris was joined by CreditRiskMonitor’s President & COO Michael Flum. The two touched on various subjects including:

- The advantages of worldwide CreditRiskMonitor coverage versus lesser subscriptions
- How collecting more than $2 trillion in trade payment data each year levels up the service
- How API and Enterprise agreements make credit data analysis that much quicker