Corporate bond spreads surge, financial distress signals flash red. Recession fears mount as trucking index slides.

Markets are hanging by a thread, and most don’t see it coming. High-yield corporate bond spreads just spiked 60 basis points in a month—hitting a six-month high. Investment-grade spreads aren’t far behind, climbing to their highest level since September. These are stress fractures in the system, warning signs that something is breaking.

Global growth expectations saw the second biggest drop on record, but, at the same time, allocation to euro zone stocks was the highest since July 2021, with banks becoming the world’s favourite sector, according to the survey.
The survey included 171 participants with $426 billion of assets under management.

https://www.reuters.com/markets/bull-crash-drives-biggest-ever-drop-us-equity-allocation-bofa-2025-03-18/