Credit Markets Paralyzed by Trade War, Putting Debt Deals on Ice
The auto industry was one of the worst hit, with even higher-rated junk names losing ground.
Photographer: David Ryder/BloombergThis article is for subscribers only.
Company debt sales have ground to a halt in the US as markets across the globe show increasing fear of President Donald Trump’s escalating trade war triggering a global recession.
A $1.1 billion leveraged loan sale that was meant to help finance HIG Capital LLC’s purchase of Canadian firm Converge Technology Solutions Corp., was put on pause, according to people with knowledge of the matter. In the commercial mortgage bond market, Brookfield delayed a $2.4 billion refinancing package for a Hawaiian mall and office complex, citing volatility as the market saw its biggest two-day price decline since March 2020 on Friday.