Credit is the scariest market to watch, not the Dow or S&P

With declines in the Dow Jones and S&P dominating the headlines, the market that has many traders and policymakers most nervous right now is debt— that is, bonds and loans. The fluid credit conditions that defined the past decade are no more.

Virus-induced weeks volatility nearly closed markets for newly issued corporate debt, and even short-term IOUs, known as commercial paper, showed enough signs of strain to prompt the Fed to intervene. With the closure of the usual business fundraising points, businesses including Hilton Worldwide, Kraft Heinz and Caesars Entertainment taps lines of credit for quick relief money.

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