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Story perspectives

Junk Bond Caution Grows Amid Rising Distress Signals

11/9/2025

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Story summary
  • Junk bond investors are increasingly cautious as the CCC-rated bond index fell nearly 0.8% over the past month.
  • Distressed US dollar loans totaled $71.8 billion at the end of October, the highest since April.
  • Spreads between investment-grade and junk bonds have widened, signaling a shift toward safer investments.
  • Distressed bond supply has surged to about $72 billion, raising concerns about risk aversion as consumer sectors show weakness.