Corporate credit tremors in aftershock of tariff-led stock rout
By Naomi Rovnick, Harry Robertson and Sinead Cruise
LONDON (Reuters) -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% 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…
