Credit Market Endures Worst Day in a Decade on Virus Rout
- Derivatives index surges as traders rush to hedge against loss
- No asset immune as bonds and loans see worst outflow in years
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U.S. credit markets are suffering their worst day in a decade as fears intensify that the spreading coronavirus will hurt corporate income and some companies’ ability to repay debt.
Bonds of American Airlines Group Inc. dropped to near distressed levels as companies worldwide canceled business travel and a growing list of conferences and sporting events were called off. Debt of rental-car companies and cruise lines came under increasing pressure. And energy company bonds and loans fell further into distress as crude oil prices slumped.