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CreditRiskMonitor: "Rock-Bottom Recoveries Lead to Record Corporate Bankruptcy Losses"

According to Bloomberg, credit default swap auctions show that average creditor recovery rates have plunged to cents on the dollar. Over the last decade, bankruptcy restructurings would typically provide unsecured creditors with about $0.30 per dollar owed. However, in 2020, the coronavirus downturn reduced the average recovery to only $0.035 (3.5 cents).

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