Riskiest junk borrowers face higher costs as huge debt supply lets investors be picky

Summary

Junk-rated borrowers are caught between a huge volume of debt supply and tougher investor demand. Because the supply is so large, investors can afford to be selective, which pushes borrowing costs even higher for the most risky borrowers. The FT headline puts the supply at $2tn.

Timeline

1. Financial Times

   26 Oct 2026, 05:00 UTCSource ↗

   The FT reports that junk borrowers are stuck between a $2tn rock and a hard place, because huge supply lets investors be picky and drives costs even higher for the most risky borrowers.