No More Fed Put: Corporate Distress Is Making a Comeback

Inflation and supply-chain disruptions are putting a growing number of companies under stress, judging by prices in the US corporate bond market.

Diebold Nixdorf Inc., an automated teller machine maker and Party City Holdco Inc., a maker of party supplies, both saw their debt prices plunge after they posted results hit by inflation. Endo International Plc, a drugmaker facing heavy opioid liabilities, saw its bond prices plummet by more than 45 cents on the dollar after it posted weak guidance for the second quarter.

There are plenty more examples. The amount of distressed debt in the Americas ...