Bath & Body Works’ Bond Risks Surge as Retailer Cuts Outlook

The cost of protecting Bath & Body Works Inc.’s debt against default jumped to a seven-month high on Thursday, after the retailer cut its fiscal-year outlook and announced a turnaround plan to refocus on its core offerings.

The company saw the spread on its five-year credit default swaps surged as much as 47.9 basis points to 237.9 basis points. Credit default swap prices usually rise as investor confidence in a firm’s credit quality falls.