Vaccine Breakthrough Lifts Distressed, Bankrupt Borrowers

Progress on a coronavirus vaccine sparked a rally in distressed securities, giving hope to beaten-down companies teetering on the brink of default or a bankruptcy filing during the pandemic.

Pfizer Inc. and its German partner BioNTech SE on Monday said their vaccine candidate was found to be more than 90% effective in preventing Covid-19 infection after a study of almost 44,000 participants. As U.S. stocks jumped to fresh records, bonds linked to industries such as retail, travel and other sectors hit hard by the coronavirus also benefited.

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