SoftBank bonds slide as AI selloff spreads to Asian credit markets

SoftBank's dollar bonds fell Friday as the AI stock selloff spread to Asian credit markets, with default insurance costs hitting a four-year high amid concerns over AI investment. SoftBank's 2032 dollar bond dropped 0.9 cents, its biggest decline in 10 weeks, while shares fell up to 16%. Asian dollar bond yield premiums widened at least 3 basis points, following record-high credit default swaps on US companies like CoreWeave, SpaceX, and Broadcom. The selloff extends a global credit repricing driven by AI-boom borrowing, though analysts call it a measured correction rather than a collapse. Investment-grade Asian dollar bond spreads reached 73 basis points Thursday, the widest since July 2025, with investors watching for sustained pressure into 2027.