Corporate Bankruptcy Filings Rise Amid Recession Fears
Corporate leaders are increasingly using the words “recession” and “bankruptcy” in their public filings, signaling a shift in how executives view the current economic outlook. The trend is visible in keyword searches of regulatory documents, where references to financial distress are rising even as the immediate impact of the pandemic fades. According to data from Thinknum Alternative Data, the company monitors the U.S. Securities and Exchange Commission filings for public companies to track these shifts.
Analysts looked at the frequency of specific terms, including “recession,” “bankruptcy,” “default,” and “insolvency.” While the use of certain phrases often follows a cyclical pattern tied to filing deadlines, the overall numbers have trended upward over the past two years. The increases suggest that companies are not just relying on standard boilerplate language but are actively discussing these risks within their reports.
One of the clearest examples is the term “default.” On March 1, 2018, mentions of the word totaled 5,200. By March 1, 2021, the number had jumped to 8,480, representing a 63% increase compared to the 2018 figure. The trend continued into 2022, dropping slightly to 7,970 mentions on March 1 of that year. The data shows a steady climb in anxiety regarding credit and payment obligations.
The word “recession” has also seen a dramatic rise. In March 2018, the term appeared just 506 times in filings. As the pandemic took hold in May 2020, mentions nearly tripled to 1,380. While the number of references dipped to 820 by March 2022, the overall trajectory remains higher than pre-pandemic levels. This indicates that economic contraction is a primary concern for many public organizations.
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Fears surrounding insolvency and bankruptcy follow a similar path. On March 1, 2018, the term “insolvency” appeared 3,170 times in SEC filings. By March 1, 2021, that number doubled to 6,170. A year later, on March 1, 2022, the figure stood at 5,190, showing that while the immediate spike has stabilized, the volume of discussion remains high.
“Bankruptcy” shows the largest percentage jump of the group. The word appeared 4,470 times on March 1, 2018. By March 1, 2021, the count had surged 67% to 7,450. The data indicates that executives are treating liquidity and solvency as major operational risks, a shift that reflects the broader environment of inflation and supply chain instability.
Executives are clearly focused on survival. While these filings are required, the sheer volume of keywords suggests that corporate America is preparing for a difficult financial road ahead. The increased use of these terms in public documents serves as a direct signal to investors and regulators about the internal mood regarding the economy.
