Tariffs Raise Concerns Over Potential Return of Hung Debt

Reported 2 days ago

Recent hefty tariffs introduced by US President Donald Trump have triggered fears of a recession and significant turmoil in the leveraged finance markets, leading to delays in critical acquisitions and a potential resurgence of hung debt. As banks grapple with the risk of retaining underwritten loans due to declining investor interest, the high-yield debt market has come to a standstill, with a notable increase in credit risk indicators. This financial instability reflects broader concerns over global trade dynamics and the economy's health amid rising market volatility.

Source: YAHOO

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