Coronavirus credit crunch could make 2008 look like 'child's play'

Experts warn companies that have gorged on cheap money for the past decade face going out of business

• Coronavirus - latest updates
• See all our coronavirus coverage

A worldwide credit crunch triggered by the coronavirus will set in motion a wave of corporate bankruptcies that will make the global financial crisis look like "child's play", investors have warned.

With the world's most advanced economies all entering a shutdown that could last months, companies that have gorged on cheap money for the past decade face going out of business thanks to a huge spike in borrowing costs on international money markets.

It was OK for companies to build up debt and keep rolling it over when borrowing costs were low