Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. The DoubleLine Capital founder and CEO Jeffrey Gundlach, also known as the Bond King, said he wants to be "out of the epicenter" of the AI race, citing widening credit spreads and extreme valuations. Escalating AI Credit Cracks Speaking on The Julia La Roche Show, Gundlach cited the S&P 500 Shiller CAPE ratio exceeding 42 as a historical indicator of negative real returns over the coming decade. While broad junk bonds remain resilient, debt linked to AI borrowing and corporate issuers like Oracle Corp. have experienced visible spread widening as the bond market rejects aggressive pricing. Don't Miss: A single bad hire can set a startup back years.
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