The World's Credit Investors Are Getting More and More Skittish
Yuan devaluation, oil plunge drive yield spreads to new high
Bonds of junk-rated energy companies dip to distressed levels
The last time investors in the $11 trillion corporate-bond market were so risk-averse, it was 2013 and the Federal Reserve’s move to unwind its crisis-era stimulus had triggered what became known as the “taper tantrum.”
A little more selling and the market will be at its worst since the fourth quarter of 2012, when the world was still recovering from Europe’s sovereign debt crisis.