AI fears push global credit spreads to 17-month, 129 bps
Worries about the risks of artificial intelligence have sent global credit spreads to their highest point in 17 months.
A big selloff in AI stocks and rising geopolitical tensions have made investors nervous, so many are moving their money into safer bets like bonds.
As a result, bond yield premiums jumped to 129 basis points, a clear sign that people are playing it safe right now.
Asian dollar bond spreads widen
Asian companies with strong credit ratings also saw their dollar bond spreads widen, echoing the global trend.
Investors seem split: Citadel's Ken Griffin is warning about a possible bubble, while Blackstone Inc. President Jon Gray stays upbeat about demand.
Asian credit markets have weakened: Chinese tech bonds widened by up to five basis points, and Indian and Korean credit spreads also ticked up.
Meanwhile, US Treasuries had their best day in more than two years, and Japanese bonds rallied, as more people shift toward cash and safer investments instead of riskier options.