DISTRESS WATCH: US Troubled Debt Increases Most in Seven Months

Talks of tariffs and the risk of a full-scale trade war have increased the amount of distressed debt in the US for the third straight week.

In the week ended on March 14, bonds and loans issued by US companies trading at less than 80 cents on the dollar, and with bond spreads of at least 1,000 basis points over Treasuries, rose 4.3% to $150.2 billion, according to data compiled by Bloomberg. That was the biggest weekly increase since Aug. 9.

Distress among US companies is still 27% lower than a peak in May 2024, but uncertainty over the relations ...