Goldman writes this morning that with businesses shuttered and job losses mounting rapidly, "there is growing concern over the ability of borrowers to service their debt obligations and the resulting risks to financial stability."
In response, Goldman "assesses the likely scale of economy-wide credit losses, the exposure of creditors to those losses, and the potential risks to financial stability and the banking sector" to conclude that "rising bankruptcies and delinquencies suggest the default cycle has started."...
It didn't take a crystal ball. Without a swift V-shaped recovery, this could get ugly, giving "domino effect" new meaning.
Goldman: The Default Cycle Has Started
Tyler Durden
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