DISTRESS WATCH: Credit Investors Shrug Off Warnings From US Jobs

Debt markets quickly set aside concerns over the health of the US economy, a reminder that global risk appetite remains buoyant despite early signs of a slowdown in growth.

A broad-based selloff on Friday spurred by disappointing US jobs data hardly put a dent in the market for the riskiest corporate debt, with the outstanding supply ending the week marginally lower. By Monday, Bloomberg’s index of US high-yield debt had started recovering, with the average yield close to a three-year low recorded at the beginning of July.

The total amount of bonds and loans in Bloomberg News’ global distressed debt ...