Corporate Bankruptcies Hit 23 Year Low in October

The number of corporate bankruptcies in Japan in October dropped 7.3 percent from a year earlier to 959, the lowest for the month in 23 years, a credit research agency said Monday.

The number fell for the 12th straight month despite the expiry in March of a law for small and medium-sized companies’ debt repayment moratoriums, with bank lending to such firms increasing, said Tokyo Shoko Research, which covers failures with debts at 10 million yen or more.

Liabilities left by bankrupt firms with at least 10 million yen in debts also declined 35.0 percent to 155.35 billion yen in October.

By region, the number of corporate bankruptcies increased in the Chubu and Chugoku regions in central and western Japan but decreased in seven other areas.

By sector, seven out of 10 sectors marked declines. The information and communications sector logged the largest drop of 21.3 percent, followed by the wholesale industry at 20.1 percent.

via Mainichi

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza