Key Takeaways
- • Yields on CCC-rated junk bonds have reached their highest level since the pandemic, according to Bloomberg's Credit Weekly.
- • The average US high-yield risk premium hit a 17-month high, signaling broader stress across the lowest-rated segment of credit.
- • Primary markets recorded the year's largest number of pulled deals, indicating issuers struggled to find buyers at acceptable pricing.
Summary
Stress is spreading through the lowest-rated corners of the credit market, according to Bloomberg's Credit Weekly, which described a 'total meltdown' in the riskiest debt. Yields on CCC-rated junk bonds have climbed to their highest level since the pandemic, reflecting the higher compensation investors are demanding to hold the weakest credits.
The average US high-yield risk premium, or spread over benchmark rates, reached a 17-month high. Primary markets also saw the largest number of pulled deals so far this year, suggesting that issuers faced difficulty placing risky debt at acceptable terms.
The report includes commentary from a high-yield investor, though the available text does not include the full remarks or further data on issuance volumes, default rates, or specific transactions.
The average US high-yield risk premium, or spread over benchmark rates, reached a 17-month high. Primary markets also saw the largest number of pulled deals so far this year, suggesting that issuers faced difficulty placing risky debt at acceptable terms.
The report includes commentary from a high-yield investor, though the available text does not include the full remarks or further data on issuance volumes, default rates, or specific transactions.
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