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Fallout from Trump’s trade war is spilling over into corporate bonds at a crucial moment - MarketWatch

1. Markets are suffering due to Trump's escalating trade war. 2. Volatility caused a significant drop in S&P 500 index. 3. Investment-grade bond issuance is significantly lower this week. 4. Investors are confused and likely to stay sidelined. 5. Quality corporate borrowers still benefit from attractive borrowing rates.

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FAQ

Why Bearish?

The escalation of trade tensions has historically led to market downturns, as seen in previous trade wars, where companies' earnings forecasts decline, negatively impacting indices like the S&P 500.

How important is it?

Given current volatility and corporate bond issuance trends, this news is significantly relevant as it affects trading behavior and overall market sentiment.

Why Short Term?

Current market reactions indicate immediate investor anxiety, making this situation acute but possibly reversible with swift trade resolutions.

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