Investors around the world are running away from almost anything smacking of risk in capital markets.
Sales in the U.S. junk-bond market have stalled, Chinese lenders are bracing for a new bout of defaults, and initial public offerings -- from First Data Corp. to Albertsons Cos. -- have been marred by investors uneasy about opening up their wallets. Blaming adverse conditions, Petroleo Brasileiro SA, the world’s biggest junk-rated borrower, canceled plans for its first local-currency bond sale in 15 years.
