DISTRESS WATCH: Trade Talks Lift $12B Company Debt Out of Danger

The prospect of a trade deal between the US and China is bolstering appetite for risky debt, with the amount of distressed debt in the Americas shrinking at the fastest pace in almost four months last week.

While the tally was almost flat elsewhere — distress dropped 0.2% in APAC and 0.3% in EMEA — in the Americas the measure fell 5.4% in the week ending May 9. Among issuers driving the decline were Hertz and Community Heath Systems.

The total amount of bonds and loans in Bloomberg News’ global distressed debt tracker declined 2.3% to $519.9 billion, ...