Pavlo Kot

Credit markets are beginning to vote with their feet, Torsten Slok says

Credit markets are beginning to vote with their feet, Torsten Slok says
Credit spreads widen, AI projects impacted

Apollo's Torsten Slok said that credit spreads on all things related to artificial intelligence are widening enough to potentially slow some AI projects. Slok also noted that while interest rates may not matter as much for AI, yields are important.

Lisa Abramowicz of Bloomberg reported Slok's comments.

Yields on the lowest-rated corporate bonds have recently climbed to highs not seen since 2022, according to Bloomberg's Lisa Abramowicz. The IMF has forecast that net borrowing by advanced economies will reach 5.2% of GDP this year, with China and U.S. deficits expected to approach 8% of GDP as reported by Abramowicz. These developments come as investors monitor credit conditions in the context of AI-related projects.

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