Rates Selloff Seeps Through All Corners of the Credit Market
- Investment-grade yields have surged to the highest since 2009
- BGIS withdrew a $916 million loan from the market Friday
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US corporate debt markets are showing early signs of weakening as rising yields and falling equities take their toll.
Risk premiums, or spreads, for investment-grade corporate bonds have climbed to their highest levels since June. In the junk-bond market, where yields have climbed to their highest in a year, some companies are having a more challenging time selling debt. Venture Global LNG Inc., a provider of liquefied natural gas, was able to borrow $4 billion on Thursday only after paying more than initially expected to do so.