by Wolf Richter
Frazzled by the sudden appearance of Financial Crisis 2, the Fed scurries in every bailout direction.
Corporate bonds have come under serious stress, starting on February 24 and building in a crescendo over the past 10 or so trading days. During this sell-off, credit-risk concerns are suddenly shooting to the top, as bond prices are dropping, and yields are surging. Financial stress is spreading. This turmoil makes it more difficult and more expensive for companies to raise funds by issuing new bonds.