Traders Wary of Bold Bets Drag Credit Volatility Near Record Low

Credit investors are eschewing bold bets, with a lack of conviction over the fallout from recent trade ructions dragging volatility toward an all-time low.

A gauge of price fluctuations in credit-default swaps that references North American companies tumbled by almost three-quarters last week to approach its lowest level on record. A similar gauge for European high-grade firms fell to its lowest since mid-2021 and spread moves in corporate bond indexes are quickly calming.