Credit spreads face risk of further widening, Societe Generale says
Societe Generale’s Juan Valencia warned credit markets face threats from high sovereign bond yields, AI disruption concerns and geopolitical worries that could widen U.S. dollar and euro credit spreads.
Credit markets are facing rising pressure from elevated sovereign bond yields, concerns over AI-related disruption and geopolitical worries, any of which could push credit spreads wider, Societe Generale's Juan Valencia said in a note. S. dollar and euro credit spreads have stayed relatively resilient on strong demand, but the backdrop leaves them vulnerable to further widening.