The number of US "zombie" companies is surging: The number of zombie companies in the Russell 3000 jumped +83 in October, to 639, the highest since December 2021. Zombie companies are firms that cannot generate enough profit to cover their interest payments and are staying afloat only through continued borrowing. Many of the firms that entered zombie status in October were in health care and biotech, sectors now struggling with soaring costs and declining federal support. To put this into perspective, the recent peak was 749 zombie firms in March 2021. Many small companies are struggling.(The Kobeissi Letter)