New Indices Tracking Distress in U.S. Economy Published Today
Today, FBT Financial Indices, LLC and TrollerBk.com released three new research indices tracking distress in U.S. financial markets. The indices use Chapter 11 bankruptcy filing data to signal underlying financial distress which may not be reflected in broader stock market averages.
The “FBT/TrBK Distress Indices” comprise three different measurements based on Chapter 11 filings:
- The Chapter 11 Distress Research Index tracks overall business bankruptcy reorganization filings.
- The Real Estate Distress Research Index tracks bankruptcy reorganization filings by single asset real estate businesses (companies owning property such as office buildings, healthcare facilities, retail outlets and multifamily apartment buildings.)
- The Healthcare Services Distress Research Index tracks bankruptcy reorganization filings by healthcare services companies.
The indices and related analysis will be published quarterly on www.distressindex.com, with the first publication focusing on the level of reorganization filings in each of the index categories during the second quarter of 2014. As likely contrarian indicators of economic performance, the indices are intended to suggest potential health or trouble in the economy: a low index value is likely to occur in a strong economy and a higher value occurs when financial distress is escalating. The indices track the increase or decrease in Chapter 11 filings for prior quarters and years, starting in 2010. To be included in the indices, Chapter 11 filings are required to meet certain criteria, including minimum asset size.
The FBT/TrBK Distress Indices were created by Bobby Guy and Robert Dempsey, attorneys at the law firm Frost Brown Todd (FBT), and are generated quarterly in collaboration with TrollerBk.com. FBT Financial Indices, LLC is an affiliate of FBT. According to FBT Chairman, John Crockett, “We live in a world of substantial change and the creation of the FBT/TrBK Distress Indices is a statement that our firm is changing with it. We’re very excited to be involved in publishing this critical economic data for our clients and other businesses.”
TrollerBk.com, a leading source of bankruptcy data and custom reports for industry participants, is the exclusive provider of the underlying data for the FBT/TrBK Distress Indices. Through its online service, TrollerBk.com tracks and archives data on bankruptcies, helping clients find opportunities and monitor cases filtered according to their specified criteria. Since its inception in 2006, TrollerBk.com has continually engaged in collaborative efforts with its clients to build new tools that are crucial to making bankruptcy data more useful.