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Global Corporate Bonds Lost $1 Trillion, and Risks Are Rising

  • Credit suffers losses resembling Covid, financial crisis drops
  • Inflation, growth slowdown and war hit buyers from all angles
Updated on

Investors in corporate bonds are bracing for more trouble after getting hammered by rampant inflation and rising yields in the first quarter.

The worldwide pool of the safest corporate debt has shrunk by $805 billion this year, while the global junk market lost $236 billion, according to data compiled by Bloomberg. That’s the biggest dollar decline since records began over 20 years ago, following a borrowing binge propelled by record-low funding costs.