Credit Contagion Channels Open Up as War Escalates: Macro View

Credit has held up through global turmoil triggered by the Iran war, though cracks are spreading as the conflict goes on.

• The rush by US and European companies to raise debt underscores a broader scramble for liquidity that risks straining credit markets. Corporate bonds and loans were already under pressure from software defaults, private credit blowups and allegations of fraud before the war added to the pressure.
• A surge in issuance at a time when buyers are turning more cautious has the potential to push credit spreads sharply wider. Amazon.com Inc. sold $50 billion of bonds this week and Tuesday ...