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Troubled Company Index Makes Largest Jump Since September 2001
By Martin | December 5, 2007
Kamakura Corporation announced yesterday that its monthly index of troubled public companies showed the greatest one month increase since September 2001. The percent of public companies classified as troubled jumped 2.4 percent in November to 10.4 percent of the public company universe.
In September 2001, the index had leaped three percent to reach its all-time high of 28 percent of the public company universe. The index is now a full five percent higher than its all time low 5.4 percent, a level reached in April and May, 2006. Current credit conditions are still better than 63.3 percent of the monthly periods since the start of the index in January, 1990.
This is down sharply, however, from a 95.2 percent rank in July. The average value of the index has been 13.4 percent over the last 18 years.
Topics: credit risk |
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