Liquidity Stress in HY Bond Market: Gomez-Bravo

US credit risk surged to multi-month highs on March 6 after February’s unexpected job cuts and rising unemployment spooked markets, according to fixed-income experts on Bloomberg’s "Real Yield." Pilar Gomez-Bravo, MFS Investment’s co-CIO of fixed income, highlighted liquidity strains in the high-yield bond market as investors reassess risk amid weakening economic signals. Kelly Burton of Barings High Yield joined the discussion, underscoring how abrupt labor market shifts are amplifying volatility in corporate debt markets. The selloff extended earlier declines, reflecting broader concerns over credit conditions as recession fears resurface amid contradictory economic data. Analysts warned that prolonged stress could tighten financing conditions further, pressuring lower-rated borrowers already facing higher refinancing costs.