The February spike in spreads was driven by private credit concerns and AI-disruption fears in software companies, not fundamental credit deterioration; bonds repriced 2 points at worst but stocks stayed down, indicating repricing of margins rather than obsolescence.

causalpending

Speaker

Jeffrey Sherman

Evidence Quote

probably at their worst day they were down two points, right? But the stocks are still down, right? Is it because the stories at the time were AI is going to take over every software name, right? So there's going to be no more software, AI you're going to do it just in your garage.

Source

Jeffrey Sherman and Jason Draho: How Should I Be Positioned? | UBS On-AirDoubleLine Capital
Created: 8/12/2026, 10:36:49 PM

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