AI-led equity selloff spilled into credit on Friday, with SoftBank Group leading
losses in Asian dollar bonds. SoftBank’s 2032 USD bond fell about 0.9 US cents —
the largest one-day drop in 10 weeks — after the group’s shares slid as much as
16% intraday. CDS on some US firms hit by the AI rout jumped sharply. Traders
said risk premia on Asian dollar debt widened at least 3 bps; the average spread
on Asian investment-grade dollar bonds rose to 73 bps on Thursday, the highest
since July 2025. The move continues a global credit repricing amid heavy
corporate borrowing tied to the AI boom and adds fresh pressure to the global
economy, although the credit selloff remains smaller than equity losses.
