Measures of bond risk surged worldwide amid concern thatinvestors may face more losses in the roiling debt markets afterThird Avenue Management froze redemptions from a high-yield fundand London-based Lucidus Capital Partners liquidated its entireportfolio.

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

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