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Riskiest Corporate Borrowers Are Left in Lurch by Bank Mayhem

  • Junk-rated companies set for ‘much tighter’ funding conditions
  • Also, China makes a quick U-turn after bond-data disruption
Customers in line outside Silicon Valley Bank headquarters in Santa Clara, California,, on March 13.

Customers in line outside Silicon Valley Bank headquarters in Santa Clara, California,, on March 13.

Photographer: David Paul Morris/Bloomberg

It’s getting harder for the riskiest corporate borrowers to raise cash. 

As the banking crisis this past week largely brought corporate bond and loan offerings to a halt, borrowing costs for junk-rated issuers surged, tipping the market value of debt for some of the most vulnerable companies into distressed levels.