The COVID-19 outbreak and its containment measures including the lockdown of much of the world's population has put corporate balance sheets under tremendous pressure. As observed during the financial crisis 12 years ago, governments are finding it necessary to engage in multiple rescue operations involving companies deemed to be systemically important. Unlike the previous crisis where government interventions mostly concerned ailing banks, interventions relating to COVID-19 have so far mostly focused on insolvency and illiquidity in industry sectors hard hit by the virus, such as aviation and tourism. Other sectors seem bound to follow as the fallout from the crisis spills over into the second half of the year.
