Junkiest junk is offering a warning sign for debt
From Yahoo Finance: 2025-05-24 15:00:00
Wall Street titans like Jamie Dimon and Josh Easterly are warning that the credit market may not be pricing in enough risk, with junk bonds signaling potential slower growth and higher inflation. The CCC tier of junk bonds has widened 1.56 percentage points this year, a concerning trend. Despite the warnings, investors are still buying junk bonds, and companies have sold over $35 billion of bonds this week. Geopolitical tensions and tariff uncertainty could impact demand for company debt. Uncertainty around growth, trade, and geopolitics is causing widening spreads in high-grade credit derivative indexes.
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