CREDIT DAYBOOK AMERICAS: King Street Raising Cash; ABS Losses

King Street Capital Management is gearing up to seize on opportunities as rising interest rates and a weakening economy pinch companies laden with debt taken on when borrowing costs were much lower. Meanwhile, the collapse of two US auto dealers and a growing pile of delinquent car loans are threatening to deliver losses in the asset-backed securities market.

• The spread on the Markit CDX North American Investment Grade Index, which tightens as credit risk declines, widened 1.28 basis points to 67.7 as of 7:27 a.m. New York time
• King Street, whose flagship fund has outpaced its peers in 2023, ...