News Digest: US corporate bond market signals rising distressed debt levels

May 24, 2022

News Digest:

The amount of US high-yield bonds trading at distressed levels, typically defined as for 70 cents on the dollar maximum, has doubled since the start of the year, from almost $14bn to $27bn, FT estimates have shown.



In another sign of rising distress in the US junk bond market, the percentage of debt trading with a yield of 10 percentage points or more above equivalent US government bonds has also spiked, UBS figures reveal.



End Notes