DISTRESS WATCH: Fastest Growth in Troubled Debt Since Tariff Day

The amount of bonds and loans in distress grew at the fastest pace in more than four months as markets started questioning the fundamentals behind a rally that accompanied the boom in AI investments.

Debt trading at less than 80% of face value rose 3.7% to $533.2 billion last week, according to Bloomberg News’ global distressed debt tracker. That was the biggest increase since the aftermath of President Donald Trump’s so-called ‘Liberation Day’ in April, when he announced sweeping tariffs against most of the US trading partners.

Among companies that saw their debt drop to distressed ...