# In an in-depth feature, Prof. Edward Altman explains why he believes many companies at risk for corporate bankruptcies are doing the opposite of what they should be doing, which is to de-leverage as the banks did after the global financial crisis of 2008

1 Faculty News July 15, 2020 ![Bloomberg logo](/sites/default/files/styles/246w/public/assets/images/bloomberg192x144.jpg?itok=yV529lwz)>

Excerpt from [Bloomberg](https://www.bloomberg.com/news/articles/2020-07-15/father-of-the-z-score-predicts-a-surge-in-mega-bankruptcies) -- "The New York University professor who developed one of the best-known formulas for predicting corporate bankruptcies has a warning for U.S. credit investors: this year’s spate of “mega” insolvencies is just getting started. More than 30 American companies with liabilities exceeding $1 billion have already filed for Chapter 11 since the start of January, and that number is likely to top 60 by year-end after companies piled on debt during the pandemic, according to [Edward Altman](https://www.stern.nyu.edu/faculty/bio/edward-altman), creator of the Z-score and professor emeritus at NYU’s Stern School of Business. Global firms have sold a record $2.1 trillion of bonds this year, with nearly half coming from U.S. issuers, data compiled by Bloomberg show."

[Read More](https://www.bloomberg.com/news/articles/2020-07-15/father-of-the-z-score-predicts-a-surge-in-mega-bankruptcies)