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Banking

Apr. 2, 2026

Here we go again: Market woes foretell of forthcoming defaults

With mounting economic pressure ahead of Q1 2026 reporting, lenders and borrowers should act now to manage covenant risk and preserve flexibility.

Marianne Martin

Marianne Martin is a partner at Jeffer Mangels & Mitchell LLP.

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Bennett G. Young

Bennett G. Young is a partner at Jeffer Mangels & Mitchell LLP.

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Here we go again: Market woes foretell of forthcoming defaults
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As Q1 2026 reporting--and for some, annual 2025 reporting--approaches, multiple global conflicts on top of an already fraught economic ecosystem are likely to further strain companies' financials, with market volatility, tariffs, unemployment, immigration, increasing war-resultant costs and other pressures compounding challenges for many borrowers.

Whether EBITDA (a concept generally meaning some form of earnings before interest, taxes, depreciation and amortization), asset valua...

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