DOGE Cuts Could Put Largest Government Contractors at Risk (1)

The Trump administration’s moves to trim government spending pose a short-term “understated risk” for companies all across the corporate credit market, according to a Barclays Plc analysis.

The efforts, led by Elon Musk’s Department of Government Efficiency, have sparked concern about companies with federal contract exposure, analysts led by Dominique Toublan wrote in a note Wednesday.

“While the legality and duration of the actions to halt spending remain in question, the prevailing uncertainty is undeniable,” the analysts wrote. “For the time being, the administration’s ‘move fast and break things’ approach could present short-term risks to specific companies and sectors.”

Investment-grade ...