Investors in company debt are bracing themselves for more trouble ahead after a turbulent quarter, as economy fears remain in place while the end of the war in Ukraine could prove elusive.
The worldwide pool of the safest corporate debt has already shrunk by US$805 billion so far this year, while the global junk market lost $236 billion, according to data compiled by Bloomberg. That's the biggest dollar decline since records began over 20 years ago, following a borrowing binge propelled by record-low funding costs.
The slump marks the biggest total-return loss for high-grade bonds since Lehman Brothers' collapse and the worst performance for junk bonds since the start of the pandemic.
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
