Junk bond investors are getting more skittish about risk. An index of CCC rated bonds in the US has dropped nearly 0.8% over the month ended Thursday, underperforming the broader high-yield market as investors increasingly avoid the riskiest debt. Distressed US dollar loans jumped to $71.8 billion at the end of October — the highest since President Donald Trump outlined his tariff policy in April. Most Read from Bloomberg Spreads between US investment-grade bonds and junk have widened over the last wee ...

Core Insights - High-yield bonds historically exhibit half the volatility of stocks and tend to outperform during low-growth periods [1] Group 1 - High-yield bonds have lower volatility compared to stocks, making them a more stable investment option [1] - The performance of high-yield bonds improves during economic downturns or low-growth periods, indicating their resilience [1]