U.S. corporate bankruptcies have climbed to their highest level since 2010, and this is not happening by chance. High interest rates combined with tight liquidity are putting maximum pressure on weaker companies, breaking them first—exactly how late-cycle stress usually unfolds. Historically, rising bankruptcies create political and economic pressure on the Fed, which eventually leads to policy shifts: rate cuts, renewed liquidity, and ultimately easing financial conditions. Markets understand this dynamic well. They don’t wait for the official pivot—they move ahead of it. Rate cuts are coming. QE is coming. Liquidity is coming. The smart money positions early, not after the headlines confirm it.
