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Corporate Zombies

Corporate Zombies are companies that should go bankrupt under normal conditions, but have managed to stay in operation thanks to low interest rates

  • The bank of International Settlements defines Zombies as companies that can't cover their interest payments with current profits
    • They have to borrower more in order to pay back their interest!
  • Zombie companies are symptoms of low interest rates and central bank printing - they are a form of malinvestment


Zombie Stats

  • The BIS calculated that 16% of US companies are Zombies (2019)

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