War Threats Deliver Worst Blow in a Year to Europe Credit: ChartBy
European credit has had its worst week in more than a year, according to a gauge of default swaps on investment-grade corporate bonds. Markets were jolted after U.S. President Donald Trump vowed reprisals should North Korea follow through with threats to fire missiles near Guam, prompting investors to unload risk and flee to the safety of government debt. The cost of insuring against non-payment jumped the most this week since February 2016, when the oil price slump heightened default risks of energy companies and their bankers.
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— With assistance by Paul Dobson