Soaring Credit Risk Pushes Borrowers to Keep Delaying Bond Sales

Credit risk gauges jumped and companies delayed bond sales in the US and Europe as investors grew more concerned that soaring oil prices and a prolonged war in the Middle East will make it harder for corporations to pay their obligations.

All of the companies looking to tap the US market on Monday stood down, according to an informal poll of syndicate underwriters, after European markets saw similar delays in bond sales borrowing from a handful of companies. With deals already delayed last week, there is now a pipeline of issuers waiting to tap the market when the opportunity arises, some of the people said.