Five Charts That Show Complacency Is Fracturing: Credit Weekly

Corporate debt’s halcyon days are showing signs of fading, with trade wars damping what had been a relentless demand for credit.

“Cracks that appeared in the credit market last week culminated into a fracture this week,” Bank of America Corp. strategist Neha Khoda wrote in a note, adding that markets are now pricing in a recession.

Tariffs are expected to dent the growth of the world economy and fears are growing that the policies will lead to stagflation in the US. Junk spreads there widened by the most in six months this past week, but remain near historic lows, meaning ...