Credit Gauges in Asia Show Most Concern Since Early Pandemic (2)

Credit-default swaps in Asia blew out the most since the worsening of the Covid-19 pandemic in 2020, as a rout in risk assets deepened following US President Donald Trump’s doubling down on his global tariff barrage and China’s retaliation.

The cost to insure investment-grade debt of Asian issuers outside Japan widened by 26.5 basis points on Monday, according to traders, deeper than the 22 basis points in earlier trading. If that level holds, it would mark the biggest single-day jump since March 2020, a Markit index shows.

The moves in credit mirror a selloff in stocks around the region Monday, ...