According to @KobeissiLetter, AI-related issuers now comprise a record 14% of the Investment Grade Corporate Bond Index, up 2.5 percentage points since 2020, based on JPMorgan data, source: @KobeissiLetter citing JPMorgan. This AI sector weight now surpasses the banking sector’s roughly 11.5% share that historically led the index, highlighting a leadership change within investment-grade credit, source: @KobeissiLetter citing JPMorgan. AI universe debt has grown by about 400 billion dollars to an all-time high of 1.2 trillion dollars over this period, underscoring elevated issuance and index concentration in AI-linked corporates, source: @KobeissiLetter citing JPMorgan. For traders, the source notes AI is reshaping capital markets, implying IG credit performance and benchmark flows are increasingly tied to AI balance sheets, a cross-asset theme crypto market participants may monitor for sentiment spillovers, source: @KobeissiLetter citing JPMorgan.

According to The Kobeissi Letter, the yield spread between Microsoft's 30-year bond and the US 30-year Treasury has narrowed to just 20 basis points, marking the lowest differential on record. This spread has decreased by 100 basis points since 2020, reflecting investor confidence in Microsoft's creditworthiness (source: The Kobeissi Letter, May 28, 2025). For traders, this historically tight spread signals a shift in risk perception that may drive more institutional capital into high-grade corporate bonds, potentially reducing liquidity in riskier assets like cryptocurrencies. As traditional safe-haven yields converge, market participants may reconsider portfolio allocations, impacting flows into Bitcoin and other digital assets.