Credit Fears Flash in Underbelly of Stocks as Fed Decision Nears

  • Most-leveraged US companies are underperforming this month
  • Investors see conditions tightening, hammering borrowers

The Marriner S. Eccles Federal Reserve building in Washington, DC.

Photographer: Al Drago/Bloomberg
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Just a few days after policy makers helped restore confidence in the global banking industry, a semblance of calm has returned to Wall Street.

Yet with a Federal Reserve decision on interest rates looming, the companies that are the most exposed to rising borrowing costs are being shunned in the underbelly of the stock market.