The Credit Edge by Bloomberg Intelligence Inside ‘the Everything Bubble’ With RBA
Jan 8, 2026
Mike Contopoulos, Deputy Chief Investment Officer at Richard Bernstein Advisors, dives into the current 'everything bubble' in markets. He shares concerns about tech overvaluation and how rising interest rates may impact credit returns. Contopoulos suggests that AI's hype could distract from underlying financial fundamentals, while he points out opportunities in agency mortgages and European equities. He emphasizes the importance of staying cautious in today’s market, highlighting risks tied to complacency and investor expectations.
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Everything Bubble Beyond AI
- Markets show excess liquidity driving valuations across many asset classes beyond just AI tech debt.
- That liquidity has created an "everything bubble" where credit and equities feel overvalued.
Tech Debt Is Duration Risk
- Technology credit is long-duration: long-dated debt plus long-duration cashflows raises rate sensitivity.
- If inflation or rates surprise higher, tech bond returns could erode materially.
Private Credit Creates Liquidity Risk
- Private credit risks are primarily liquidity mismatches and capital-call pressures, not immediate default waves.
- That illiquidity could later feed weakness into public credit markets during stress.