The Stock Market’s Biggest Risk Is Harder to See Than an AI Bubble

1. Citi analysts note widening gap in equity versus credit market risk premiums. 2. Lower-rated corporate bond yields have increased by 15 basis points since October. 3. Equity markets are vulnerable due to reliance on benign credit risks. 4. High valuations and inflation are limiting stock gains despite strong earnings. 5. Bank borrowing increasing suggests potential liquidity concerns in the credit market.