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.
