Deutsche Bank: Global credit bond valuations do not fully reflect risks.

Strategists at Deutsche Bank warned in a report that global credit bond valuations do not reflect current risks, potentially exposing them to a downside risk. These strategists noted that investor sentiment has become more optimistic, "despite the ongoing escalation of geopolitical risks." They stated that these risks include the policies of the new Federal Reserve Chairman, disruption to the software industry by the success of AI in the credit bond market, and the potential strength of the euro damaging Germany's business sentiment. The strategists warned that once these risks materialize, credit bond valuations could experience a significant drop.