The impending Trump presidency has triggered widespread anxiety in the junk debt market, particularly in Europe, where companies are racing to secure financing ahead of potential tariff implementations. The market has seen its busiest start since 2017, with 19 out of 28 loan tranches being repricings as companies seek to lock in favorable terms. Lenders are conducting extensive due diligence, exemplified by Hunter Douglas’s two-hour creditor call that focused heavily on tariff impact assessments. Investment managers are already adjusting their portfolios, shifting away from vulnerable sectors like automobiles and chemicals toward domestic industries less exposed to trade tensions. While European high-yield borrowers are expected to face the initial impact, there are broader concerns about potential inflationary pressures and their effect on Federal Reserve policy, which could impact the entire credit market.