How much stress could Covid put on corporate credit? Evidence using sectoral data

Benoit Mojon, Daniel Rees and Christian Schmieder

BIS Quarterly Review, 2021

Abstract: The economic downturn prompted by the Covid pandemic was historically deep and highly divergent at a sectoral level. We project corporate credit losses for the G7 economies, China and Australia until 2022 and find that they could be substantial for the sectors most affected by the pandemic. Yet, because those sectors account for a relatively small share of total corporate borrowing, aggregate corporate credit loss rates (ie losses in relation to the stock of corporate debt) could fall short of those sustained during the Great Financial Crisis of 2007–09.

JEL-codes: E17 E44 G20 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:bis:bisqtr:2103e

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