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Junk bond market: securities market may replace bank lending, uneasily

Junk bond market downturn in March leaves companies facing financial distress and bankruptcies amid inhibited risk appetites and balance sheet troubles of regional banks.

1 min read
  • Securities market not yet a big source of cash for companies, with no high yield market transactions in US last week.
  • High-yield bond spreads increased by full percentage point in March to over 5%.
  • Companies hoping for easier conditions after 2022 face financial distress and bankruptcies due to sudden seizure of debt markets.
  • Balance sheet troubles of regional banks and inhibited risk appetites leave junk bond market in downturn.
Junk bond market: securities market may replace bank lending, uneasily
After a roaring start to the year, a downturn in March shows that risk appetites are clearly inhibited
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