Comment by fny

This doesn't mean a lot. People made bets on lower rates which drove money into junk. Those prices renormalized to levels seen over the past year.

In fact, lots of business had the opportunity to roll their debt over the past year, so bankruptcy in the medium term seems unlikely.

The broader question is why now and so quickly. In my view, people got way over their skis in rate-based trades which drove a lot of things higher including tech multiples. This likely why we also have the NASDAQ down 3.5% in a single session.

[0]: https://www.tradingview.com/chart/?symbol=AMEX%3AJNK