Credit set for worst year since 2008 crisis as crashes roil markets

Credit markets are set for the worst year since the global financial crisis as investors abandon hope of a late rally.

High-yield and investment-grade notes are headed for losses in both euros and dollars — the first time all four asset classes have posted negative total returns since 2008, based on Bloomberg Barclays indexes. 

It’s been an exceptionally volatile month, with headlines on companies including CMC di Ravenna SC and Nyrstar NV triggering the biggest weekly jump in euro high-yield spreads in almost seven years, while dollar investment-grade spreads are at a two-year high amid a sell-off triggered by General Electric’s woes.

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