Oaktree, TCW and Sona Spot Opportunity in Turmoil: Credit Weekly

Credit investors are looking to pounce on new opportunities resulting from the wild swingsin global financial markets triggered by the US-China trade war.

Average spreads in the US high-yield bond market are about 419 basis points — lingering around the highest since late 2023 — while prices in the leveraged loan market have dipped to below 95 cents on the dollar since President Donald Trump’s announcement this week that the US was raising the tariffs on Chinese goods to 145%.

Speculative-grade companies with exposure to tariff-related costs — especially in the retail and energy sectors — have already traded ...