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SoftBank credit risk hits four-year high
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SoftBank credit risk hits four-year high

SoftBank Group's five-year credit default swap spread reached 466 basis points, its highest level since October 2022. 

 

 

Shares in the Japanese investment group fell approximately 10.8% on November 6, bringing their decline since early September close to 50%.

Concerns about financing AI investments, borrowing costs and the timing of investment returns are weighing on confidence. The increase in credit spreads suggests that stress in AI-related equities is spreading into debt markets, although it does not by itself mean a default will occur.

 

 

 

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