In the wake of rising concerns about the U.S. economy and European consumer spending, debt investors are increasingly resorting to insurance against corporate bond defaults. What Happened: The cost of insuring a group of North American high-grade credits against default experienced a significant increase on Friday, the largest since October. The credit default swap index recorded its highest daily trading volumes in roughly five months. Its European equivalent also saw its busiest day since French President Emmanuel Macron unexpectedly called a snap election in June. According to a report by Bloomberg, Investors are gravitating towards credit derivatives, often the first indicators of a market downturn, in response to weak labor market data that has raised concerns about the Federal Reserve’s delay in interest rate cuts. Disappointing tech company earnings and a decrease in consumer spending have further fueled these concerns. Raphael Thuin, Tikehau Capital’s head of capital market strategies, voiced concerns about the “weaker macro ...