Bankruptcy fears over speculative borrowing

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Bankruptcy companies are reportedly hiring additional staff in preparation for the end of a global credit boom, which could see a sudden peak in company failures across both the US and Europe.Record borrowing under loose lending conditions, by speculative-grade companies, has helped provide biy-outs and debt refinancing to the value of over $100 billion over the past year.However, signs that bond markets may be beginning to struggle is creating nervousness, not least with a recent fall in value of US Treasury bonds, coupled with anxieties tied to corporate bonds.There is a fear that the moment economic conditions start to harden up, many businesses will not be able to cope with their extensive debts on top of costs.Areas such as retail, utilities, and telecommunications were seen as industries most at risk.