On October 23, indicators from the global bond market revealed that the market was gripped by the most intense risk-averse sentiment in over a year. Spurred by the sell-off in artificial intelligence (AI) stocks and mounting geopolitical tensions, investors were rushing into safe-haven assets. By Friday, the spreads on Asian high-grade corporate dollar bonds had expanded to their highest level since July of the previous year, mirroring broader trends in the credit market. Institutional data indicated a notable increase in the yield premium on global corporate bonds, reaching 129 basis points, which represented the widest spread since May 2025.

Market anxieties have escalated regarding the rapid pace of borrowing to fund AI-related expenditures. Investors are broadly concerned that the technology may not yield the anticipated profits in the near future. There has been a significant unwinding of investments in the AI sector, triggering disagreements among prominent investors. Citadel Securities CEO Griffin cautioned about a potential bubble, whereas Blackstone Group President Jon Gray remained unperturbed, pointing to the "near-parabolic" growth in market demand as a reason for optimism.