Analysis:Corporate credit tremors in aftershock of tariff-led stock rout
LONDON : The tariff shock and recession fears that have sent world stocks into a tailspin over the last week are rolling into corporate funding markets, raising the cost of borrowing and disrupting financing plans even for lower-risk companies.
With U.S. Treasuries nursing huge losses on Wednesday – the strongest sign yet that stress is impacting so-called safe-haven assets – attention has now turned to the $35 trillion global corporate bond market, which has swelled by around 40 per cent since 2008 as companies gorged on cheap debt, OECD data shows.
The premium investors demand to hold low-rated corporate credit versus government debt has soared by 100 basis points in a week, the biggest short-term move in so-called global junk bond…
