DISTRESS WATCH: Troubled Debt Expands For First Time Since June

The return of volatility to global markets and renewed recession fear in the US pushed the distressed debt tally higher for the first time in seven weeks.

The fallout is likely contained for now, though, as measures of credit risk ease from their highs a week ago and debt investors demonstrate a resiliant appetite for yield ahead of central bank rate cuts.

The dollar amount of bonds and loans in the Bloomberg News distressed debt tracker jumped 1.4% to $582.4 billion in the week ended Aug. 9. All of the increase came in the Americas, where the measure increased 4.4% ...