Tariffs Stoke Fears That Hung Debt Will Return
President Donald Trump signs an executive order during a tariff announcement in the Rose Garden of the White House in Washington, DC, on April 2.
Photographer: Kent Nishimura/BloombergThis article is for subscribers only.
Deals in leveraged finance have stalled, and markets have been upended, raising the possibility that banks might once again get stuck with debt they’ve committed for acquisitions.
US President Donald Trump’s announcement of the steepest American tariffs in a century this past week stoked recession fears and sent stocks plunging. Financing for a Canadian auto-parts maker and a deal supporting H.I.G. Capital’s bid for a Canadian software provider were both delayed, creating risks for the lender groups, as the fallout rippled through leveraged finance markets.