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Credit hedge funds hit by deepening global junk bond selloff
Credit hedge funds are suffering mounting losses as a prolonged selloff in the riskiest segments of global high-yield debt markets drives down bond prices and forces some managers to unwind concentrated positions, according to a report by the Financial Times. Yields on CCC-rated corporate bonds have climbed above 21% in Europe and 18% in the US, compared with approximately 16% and 15% respectively at the start of 2026. Rising interest rates, elevated energy costs and concerns over AI disruption have intensified pressure on heavily indebted borrowers, while uncertainty surrounding France's fisc