Skip to content
Subscriber Only

Distressed Debt Balloons to Almost $1 Trillion, Nears 2008 Peak

  • Oil & gas sector leads with $161 billion of distressed debt
  • Investment-grade issuers such as Ford trade at deep discount
A pedestrian and a cyclist cross the street in the Times Square neighborhood of New York.
A pedestrian and a cyclist cross the street in the Times Square neighborhood of New York.Photographer: Michael Nagle/Bloomberg

The amount of distressed debt in the U.S. has quadrupled in less than a week to nearly $1 trillion, reaching levels not seen since 2008 as the collapse of oil prices and fallout from the coronavirus shutters entire industries across the globe.

In total, the tally has ballooned to $934 billion of U.S. corporate bonds that yield at least 10 percentage points above Treasuries and loans that trade for less than 80 cents on the dollar, according to data compiled by Bloomberg. That’s nearly double the amount from less than a week ago.