Junk Bond Market Sees Record Sales Amid Trade War Jitters
US companies with weaker credit ratings are rushing to issue junk bonds ahead of potential trade tensions and the expiration of the 90-day pause on Donald Trump’s tariffs in July. Junk bond sales hit $32 billion in May, the highest since October, as companies aim to lock in financing before market volatility increases. Spreads spiked in April after the tariff announcement but retreated in May. Investment-grade bond sales are also strong, with projections of $110–120 billion in June.
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