Global Credit Spreads Widen Most in Months as Strains Mount

Investment-grade bond markets, which had emerged as a safe haven during recent AI-driven swings in equities, are starting to show some signs of strain.

Yield premiums on Asian investment-grade dollar notes were about two basis points wider Friday, according to traders. If that holds, weekly spreads would climb by the most since November. Globally, premiums on comparable debt have already widened by nearly 4 basis points this week, the largest move since early November, according to a Bloomberg index, as more investors warn that AI could increase default risks across parts of the software sector, particularly among more leveraged borrowers.