Business · Markets · 4 hrs ago

European Junk Bond Yields Top 21% as Credit Market Fears Spread

European Junk Bond Yields Top 21% as Credit Market Fears Spread

Yields on Europe’s riskiest junk bonds topped 21% as prices of high-risk debt fell.

The sell-off is affecting the US and Europe, where bonds and loans from the least creditworthy companies have dropped in value.

Higher interest rates and distressed companies transferring assets have added to the pressure.

These companies have a harder time repaying debt, so investors see their bonds and loans as especially risky.

Major credit hedge funds have suffered heavy losses, and asset sales are adding to market unease.

The turmoil is raising fears of further instability across global bond markets.

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