Experts warn companies that have gorged on cheap money for the past decade face going out of businessA worldwide credit crunch triggered by the coronavirus will set in motion a wave of corporate bankruptcies that will make the global financial crisis look like “child’s play”, investors have warned. Dozens of companies in Europe and the US have issued profit warnings as they prepare for a massive hit to revenues. “It was OK for companies to build up debt and keep rolling it over when borrowing costs were low,” Coote told the Guardian. “No one in their right mind is going to lend Virgin Australia money,” Coote said. Not from its deposits or its liquidity because it’s now got more money going out than coming in.”

Source: The Guardian March 20, 2020 01:36 UTC