DISTRESS WATCH: US Credit Stress Eases; BI Sees More Ahead (1)

The tally of distressed bonds and loans in the US reached the lowest level in almost six months, wiping out all of the stress seen in the weeks since President Donald Trump’s so-called Liberation Day tariff announcement. If history is any guide, investors may see America’s pile of troubled debt grow over the next two months, according to Bloomberg Intelligence.

The amount of US corporate bonds and loans in Bloomberg News’ distressed debt tracker dropped 1.9% to $150.6 billion in the week ended Sept. 5, the lowest level since March 14.

The ratio of bonds in a benchmark ICE ...