Reported 2 months ago
A sudden spike in credit risk measures has led to a pause in US corporate bond sales, raising concerns about a potential economic slowdown. The increase in perceived default risk was noted globally, with US corporate credit spreads reaching their highest levels since March 2023. Analysts now emphasize the impact of weakening job growth and expectations for aggressive rate cuts by the Federal Reserve, suggesting that corporations may prioritize caution in debt issuance during uncertain economic conditions.
Source: YAHOO