Pursuits
Junk Bonds Forebode Trouble Ahead for British High Street
- Moody’s sees tough second half of 2017 when inflation felt
- Yield spreads for retailers stay elevated after Brexit
Oxford Street in London.
Photographer: Chris Ratcliffe/BloombergThis article is for subscribers only.
An early test of Brexit is taking shape in the bond market, where investors are marking down the debt of British shopkeepers with an eye on how rising inflation will translate into thriftier customers.
Refinancing risks are multiplying. Bank of America Corp.’s gauge of borrowing costs for high-yield retailers and eateries in pounds has 23 basis points since Brexit. That’s while peers have seen yield premiums fall.