Archive · 27 Jan 2026
Junk Debt Sales Surge After Trump Tariff Threat Eases
Junk-debt sales in the US and Europe increased a lot on Monday.
This happened because the US President, Donald Trump, stopped talking about putting tariffs on Greenland, which made people feel less worried about geopolitical risks.
Many companies, like United Airlines, Italmatch Chemicals, and Alloheim Senioren-Residenzen, took this chance to sell junk bonds or refinance their debt.
Even though there were some worries about tariffs, inflation, and wars, the market for these risky loans is doing well.
There's a lot of money waiting to be invested, and companies are taking advantage of this calm period to get the money they need.
It's like a big sale where everyone is trying to buy and sell before things change again.
Junk-debt sales surged in the US and Europe on Monday after Trump abandoned Greenland-linked tariff threats.
30 deals worth about $39 billion were made in the US leveraged loan market, the busiest day since July.
Nine borrowers in Europe and four in the US launched high-yield bonds, including United Airlines.
Risk premiums and Europe’s iTraxx Crossover Index dropped, indicating lower credit risk.
Companies like Italmatch Chemicals and Alloheim Senioren-Residenzen sought close to $2 billion in debt.
- Who
- Firms and borrowers in the US and Europe
- What
- Surge in junk-debt sales and high-yield bonds
- When
- Monday, after US President Donald Trump abandoned his Greenland-linked tariff threats
- Where
- US and Europe
- Why
- To take advantage of easing geopolitical tensions and tap debt markets
- Total Deals
- 30 deals worth about $39 billion
- US Junk Bonds
- 4 high-yield bonds launched
- European Junk Bonds
- 9 borrowers in the region’s junk-bond market
- Risk Premiums
- Yield of roughly 6.6%
- Europe’s iTraxx Crossover Index
- Dropped toward multi-year lows
- Loans for Buyouts
- $11.7 billion in January, highest since February 2022
- Italmatch Chemicals SpA
- Looking for close to $2 billion-equivalent in euros
- Alloheim Senioren-Residenzen SE
- Looking for close to $2 billion-equivalent in euros