Finance News

The pressure pushes the most dangerous corner of the US bond market

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The price of U.S. corporate bonds sold by low-priced companies has fallen, suggesting that lenders are increasingly concerned that scorching inflation and higher interest rates are starting to hit the most vulnerable lenders. economic downturn.

Bonds assigned a triple rating of C or below, the lowest rung on the rating ladder, since the end of April, have posted a negative yield of 2.8 percent, according to the Ice Data Services index. The performance contrasts with the 1.3 per cent gain of double rated B debt, the highest quality part of the bond market.

The sharp fluctuation follows a period of relative performance on three-rate C debt, with the change reflecting investors’ sharp sentiment about the outlook for the American economy and the health of US companies that are already beginning to weaken.