AI Bubble and Growth Fears Are Creeping Into US Credit Markets

The malaise sweeping financial markets globally is creeping into credit markets.

Risk premiums on everything from investment-grade corporates to junk bonds are hovering near their highest levels in weeks. On Monday, investors withdrew about 40% of bond orders on several corporate bond offerings after seeing final pricing, an unusually high level of attrition. A separate investment-grade bond sale was pulled from the market altogether last week, a rarity in that market. In the leveraged loan market, banks have struggled to sell some debt tied to acquisitions.