What happened
US investment-grade credit spreads remained stable despite volatility in technology equities. Bloomberg US Corporate Bond Index maintains 10% technology exposure, contrasting with 33% weighting in S&P 500. Investment-grade spreads widened by 0.02 percentage points during equity sell-offs. Tech firms issued $150 billion in bonds in late 2025 to fund AI infrastructure. High cash reserves isolate bondholders from equity market valuation corrections.
Why it matters
Fixed-income investors and CFOs face lower contagion risk from equity corrections because credit indices prioritise sector diversification. Lower tech weighting prevents equity volatility from increasing borrowing costs for non-tech firms. Stability follows December 2025 AI-driven bond surge, where firms secured capital for infrastructure. Therefore, credit access remains open for AI scaling despite equity price fluctuations. Pattern validates European Central Bank’s November 2025 warning on tech risks and proves resilience of AI-linked debt.
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