Even at the depths of the 2008 financial crisis, Cirque du Soleil’s acrobats kept twirling. While other companies tightened their belts or went under, the Canadian circus  expanded its roster of flamboyant shows. But the coronavirus crisis proved a vault too far. 

Last month, Cirque du Soleil was forced to cancel all shows and lay off 95 per cent of its employees. Two weeks ago, it missed a payment on its $900m of debts — sourced from the riskier leveraged loan market — and became the latest corporate victim of the virus. “The situation has been sudden and has put a very difficult strain on the company that we are actively working to manage,” Cirque du Soleil said.

The Canadian entertainment company is not alone. What started as a health crisis has  morphed into an economic crisis of staggering proportions. Morgan Stanley predicts this year will see the deepest global recession since the Great Depression. Despite the  recent market recovery, some investors and analysts still fear that a financial crisis could compound the economic damage.