Credit Risk Surges for Global Company Debt on Growth Concerns
Cost of insuring U.S. corporate debt climbs to 2013 high
Yield premiums over sovereign bonds rise to most since 2012
By
Cordell Eddings and Selcuk Gokoluk
Updated on
Credit risk around the world is surging on concern that a rout in stocks and commodities may hurt companies’ finances and increase the chances of default.
The cost of insuring U.S. companies’ debt against default climbed to the highest since 2013, based on credit-default swaps. In Europe, a similar gauge for high-yield companies rose to the highest this year, while a measure for investment-grade debt increased to the most in almost two months.
