The study looked at how news about companies going bankrupt affects other companies in the same industry. They used data from Credit Default Swaps (CDS) and stock markets to see if bad news spreads like a contagion. They found that when one company goes bankrupt, it can make other companies in the same industry more likely to have financial problems too. This is especially true for Chapter 11 bankruptcies. However, when a company goes bankrupt in a different way (Chapter 7), it can actually make other companies in the industry more competitive. The study also found that unexpected jumps in a company's CDS spread can have the strongest impact on spreading financial problems across the industry. These findings are important for people who invest in credit-sensitive instruments like bonds.