Tire Plunge Shows ‘No Margin for Error’ in U.S. Junk Bond Market
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Investors got schooled on the dangers lurking in a high-yield market priced for perfection last week as bonds issued by American Tire Distributors Inc. plunged into the abyss.
Reports that one of its major customers, Goodyear Tire & Rubber Co., planned to drop the independent supplier of tires spurred a violent selloff as S&P Global Ratings downgraded to CCC+ from B-.