Polsinelli announced today the launch of the Polsinelli/TrBK Distress Indices. The indices, unique in the industry and proprietary to Polsinelli, will be published on a quarterly basis in conjunction with bankruptcy information provider TrollerBK.com. The Q1 2015 Indices report has recently been issued, and is currently available here
The Polsinelli/TrBK Distress Indices are research indices that use Chapter 11 bankruptcy filing data as a proxy for measuring financial distress in the overall U.S. economy, the real estate sector, and the healthcare services sector. The indices are likely to be contrarian indicators of economic performance, so that a high index value reflects increasing financial distress in the economy. The indices track the increase or decrease in comparative Chapter 11 filings for prior quarters and years, based on a rolling four-quarter average.
“We’re excited about how the indices can provide valuable information to businesses and funds about the markets in which they operate, showing how distress in the current economy compares to each quarter since 2010,” said Bobby Guy, a Polsinelli Shareholder who joined the firm in April. Guy, along with attorney and colleague Robert Dempsey, helps prepare the quarterly indices. “We first began reporting the indices in 2014, and we’re looking forward to continuing them as part of Polsinelli,”
The Chapter 11 Distress Research Index
was 42.76 for the first quarter of 2015. This represents a decline of almost 60% in the index from the start of the index measurement period in the fourth quarter of 2010. However, the index has increased approximately 2 points since the fourth quarter 2014, which is the first noticeable increase in the index since 2010.
The Real Estate Distress Research Index
was 26.86 for the first quarter of 2015. This represents a decline of almost 70% since the fourth quarter of 2010. The index dropped 6 points in the most recent quarter, and compared to the same period one year ago, the index has dropped by over 44%.
The Healthcare Services Distress Research Index
was 111.67 for the first quarter of 2015. It is the only index that remains above the baseline of 100 from 2010. However, the most recent quarter shows a decline of just over 26 points since the fourth quarter of 2014, and compared to the same period one year ago, the index has decreased by almost 11%. In the next 6 weeks, Polsinelli also anticipates releasing a report detailing the reasons that the healthcare companies tracked in the index in 2014 encountered financial difficulties.