America’s Corporate Bond Binge Interrupted by Evergrande Tumult
- At least eight corporations held off on borrowing on Monday
- Hesitance may just be a blip amid tight U.S. credit spreads
This article is for subscribers only.
Corporate America put the brakes on a month-long borrowing binge on Monday as growing concern about spillover effects from property developer China Evergrande Group roiled markets globally.
At least eight blue-chip companies that had planned to sell bonds decided to stand down, underwriters said. Worries about Evergrande pulled down equities around the world, including about a 2% decline in U.S. stocks. A key barometer of high-yield investors’ risk aversion, the Markit CDX North American High Yield Index, weakened.