Trump tariff fallout strains U.S. market for risky corporate loans

Leveraged-loan issuance shut down for 2 weeks amid record outflows from funds

20250411N trump-store-closed montage REU

U.S. President Donald Trump's tariffs have heightened concerns about a recession that could lead to more defaults by risky borrowers. (Nikkei montage/Source photos by Reuters)

HIROFUMI TAKEUCHI

NEW YORK -- The U.S. is showing signs of a credit crunch for high-risk corporate borrowers as tariffs and recession fears rattle investors that had grown complacent about default risks.

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