European Credit Hits the Brakes With Inflation Fears Circling

Europe’s credit market started the week on the back foot as inflation worries gathered over global markets, driving funding costs toward the highest in six months.

Just two borrowers are offering deals in the region’s market for new bonds in the slowest Monday for sales since August, according to data compiled by Bloomberg. Corporate credit risk is rising and wider markets are sliding as inflation worries gather steam.

Ongoing energy shortages and supply-chain disruptions are feeding into a bleak outlook for the cost of living in most economies. Prices rose in New Zealand at the fastest pace in 10 years ...