Growing fears of corporate defaults hit US credit marketsWorries about corporate credit defaults rose in the US for a second straight day on Tuesday, after US President Donald Trump threatened to ratchet up tariffs on Canada.
In derivatives markets, the cost of protecting corporate credit against default rose to the some of the highest levels in nearly seven months. The spread on the Markit CDX North American Investment Grade Index widened as much as 2.4 basis points to its highest reading since mid-August.