First Brands, Tricolor Wipeouts Show Cracks in Credit Golden Age

It is, by almost any measure, a golden era for US credit markets. Companies are selling debt at a near record clip; relative borrowing costs are hovering around historic lows; and investors are pocketing the best returns in years.

But in recent months, a flurry of meltdowns — each of which inflicted losses of more than 60% on investors — has exposed cracks in that edifice.