Global credit spreads climb to 17-month high as AI investment doubts grow

Deep News10-23

As AI-themed stocks were sold off and geopolitical tensions intensified, investors sought safe-haven assets, with multiple gauges in the global bond market signaling that risk aversion has risen to its strongest level in more than a year.

On Friday, spreads on Asian high-grade corporate dollar bonds widened to their highest level since July of last year, in line with the broader credit market trend.

A Bloomberg index showed that global corporate bond credit spreads widened sharply to as much as 129 basis points, the highest level since May 2025.

The market is growing increasingly concerned about whether debt-fueled AI investment can generate returns quickly enough, prompting investors to reassess the related risks.

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