Credit markets were ensnared in the global equities selloff Tuesday, with measures of corporate default risk in the U.S. jumping to a two-week high.
The risk premium on the Markit CDX North American High Yield Index, a credit-default swaps benchmark tied to the debt of 100 speculative-grade companies, jumped 26 basis points to 536 basis points at 4:32 p.m. in New York. A similar index for investment-grade debt jumped 4.6 basis points to 108.652, also a two-week high.
