Credit investors struggle to decide what tariffs will mean for defaults

Traders report difficulty evaluating risk, but elevated yields have kept demand strong nonetheless

Two months after the ‘Liberation Day’ tariff announcements, investors continue to struggle with the risks posed by uncertain US policy and its likely economic effects.

Buy-siders report little progress since April in determining how far trade barriers could affect the ability of issuers to repay their debt – either because of direct effects on businesses, or due to a slowing economy – and how