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Markets near highs despite bond yield spikes and private credit risks from defaults and fund redemptions.

Market News
24 Aug 2026
Seeking Alpha
View Source
Bearish
pluang ai news

Markets are trading near record highs even as bond yields reach levels not seen since 2007 and energy prices stay high. However, private credit markets are showing signs of stress with record default rates and redemption gates at major funds like Apollo and Blackstone, raising concerns about systemic risk. Additionally, the AI infrastructure expansion has led to $3 trillion in off-balance sheet liabilities among hyperscalers, with credit downgrades and rising credit default swap prices indicating market strain. Investors are advised to be cautious with portfolio allocation and watch for further risks emerging in these areas.

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