Concerns about artificial intelligence push global credit spreads to a 17-month high

The global bond market is experiencing heightened risk aversion due to the sell-off of artificial intelligence-related stocks and escalating geopolitical tensions. The spread of high-rated Asian corporate dollar bonds has risen to its highest level since July last year, and the global corporate bond yield premium has surged to 129 basis points.

Concerns about the pace of spending related to artificial intelligence have triggered turmoil, with Castle Securities CEO Griffin warning of bubble risks, while Blackstone President Jon Gray believes market demand remains strong.