October 08, 2026

Zombie Companies - Chickens Coming Home To Roost

Is this the trigger that will bring down Wall Street?

22% of the Russell 2000 are zombie companies, that is, their operating cash flows do not cover the interest on loans about to be rolled over, coming off their record low base rates. Executives have been boosting their bonuses through share buybacks, instead of doing the prudent thing - paying down debt.

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