AI Debt Contagion: Credit Correlations Hit Highest Since The Iran War As Goldman Names The New "Defensives"

There is a threshold.

For months, the AI credit binge was something the rest of the bond market could watch from a safe distance: hyperscalers and neoclouds issued, datacenter project bonds piled up, and everyone else carried on. Then, starting in mid-October, the distance collapsed. In her latest Global Credit Trader, "Taking Stock of Performance and Where to Invest From Here" (available to pro subs), Goldman's chief credit strategist Amanda Lynam puts it bluntly:

Highest Correlation Since The Iran War