Corporate Bankruptcies on the Rise as Interest Rates Rise (Avoiding Over Leverage)

Bankruptcies are rising. According to the article there have been 324 bankruptcy filings which is nearing 2022 levels. Much of that has to do with highly leveraged firms with high debt loads. A couple thoughts on avoiding such situations....

Principle: Ensure you have significant liquid assets and cushion in financing (Probably get a better rate than more risky firms.).

Principle: Make sure growth and resource use is in balance. 

Corporate bankruptcies and defaults are surging – here’s why

Looking for some reasons as to why that happens I came across a nice explanation. I wanted the explanation to be in non academic language. How do fed rate hikes affect debtors and bankruptcy filings.