Wall Street analysts rip up credit forecasts

Recession risk: Traders work on the floor of the New York Stock Exchange. While credit analysts were caught flatfooted, many have had to revise their estimates as the sell-off rippling through the markets drives corporate bond spreads wider. — AFP

NEW YORK: Just a few months into the year and Wall Street credit analysts are ripping up their forecasts and pencilling in a new, grimmer outlook after a jolt to the market.

Prognosticators from Barclays Plc to Goldman Sachs Group Inc were caught flatfooted and had to revise their estimates as the selloff rippling through the markets drove corporate bond spreads wider and saw a series of borrowers postpone sales.