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The price to insure hyperscaler debt against default reached a record high, arriving alongside a historic two-day crash in Seoul's semiconductor market.
The simultaneous move in Asian equities and AI-linked bond spreads carries the same diagnosis: the leverage built into the AI trade is starting to register on both sides of the capital structure.
The bond market's read on hyperscalers Hyperscaler credit spreads widening to record levels means bond investors now demand more compensation to hold debt issued by large AI infrastructure operators.
Credit spread widening is the bond market's mechanism for pricing increased risk on existing and upcoming borrowings. A stock drawdown gets classified as volatility and absorbed.
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