Measures of bond risk surged worldwide amid concern that investors may face more losses in the roiling debt markets after Third Avenue Management froze redemptions from a high-yield fund and London-based Lucidus Capital Partners liquidated its entire portfolio.

Credit-default swaps that are used to insure against losses on junk bonds rose in the U.S. and Europe, with the risk premium on the Markit CDX North American High Yield Index rising to the highest level since November 2012 and the Markit iTraxx Europe Crossover Index that tracks speculative-grade debt in Europe climbing for a fifth day. BlackRock's iShares iBoxx High Yield Corporate Bond ETF, the largest fund of its kind, dropped as much as 1.1 percent to the lowest levels since 2009.

“Everyone is nervous,” said Bill Blain, a strategist in London with brokerage Mint Partners. “We know energy names are in most trouble and that defaults are set to soar. At the moment it's a false calm before the storm moment. There are no bids or offers. Nobody wants to be the first to jump.”