Credit Markets Pare Selloff After Trump Wins U.S. Presidency
- Traders bought and sold more than $27 billion of protection
- ‘Not clear that this should be a big negative’ for bonds
Is the Market Overreacting to the Election Results?
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Trading in corporate bonds in the United States surged after Donald Trump was elected its 45th president.
Volume was more than 50 percent above average daily levels, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. Notes issued by healthcare, materials and technology companies saw the largest increases. The jump comes as credit markets worldwide pared an earlier selloff.