Reported 2 months ago
Amid rising fears about the health of the US economy, credit investors are actively seeking protection against corporate bond defaults. Notable increases in trading volumes and the cost of credit default swaps indicate a growing concern, particularly following weak labor market reports and disappointing earnings from major companies. Analysts suggest that a shift in market sentiment is occurring, moving from concerns about overheating and rising rates to fears of economic downturn and potential interest rate cuts by the Federal Reserve.
Source: YAHOO