BlackRock Sees Credit Market Risks Rising as Trade War Rages on

Risky corporate-debt markets have room to drop further to reflect damage from the ongoing trade war, according to BlackRock Inc.

“We’re likely to see spreads widen from here as we see further deterioration in risk assets and in overall credit quality,” Mitch Garfin, the firm’s co-head of leveraged finance, said on Bloomberg Intelligence’s Credit Edge podcast.

Junk debt fell by the most since September 2022 earlier this month as the US unleashed unexpectedly aggressive trade policies. Credit has since recovered with equity markets, buoyed by tariff reversals, but there’s scope to weaken again as earnings decay and ...