The Julia La Roche Show · Wednesday, September 16, 2026
Jeffrey Gundlach highlighted a notable divergence in the high-yield market based on AI-related borrowing. He stated that while the non-AI sector remains strong, AI-related borrowing shows significantly wider spreads, with junk bonds out about 50 basis points and bank loans out about 130 basis points from their tightest levels.
“But when you look at the AI component, the visibly noticeably widened. The junk bonds are out about 50 basis points from their tight, and their prices are near their peak on the AI bonds. And the bank loans are out more like 130 basis points from their tight.”
“And that hasn't bled to the single B category so far. So, that's what we're kind of waiting to see.”